Hālāwai Papa Alakaʻi Kūmau Keʻena Kuleana Hoʻokipa O Hawaiʻi Hālāwai Kino a Kikohoʻe In-Person and Virtual Regular

Home , Boom (sailing), Honolulu Marathon, North Shore (Oahu)

HĀLĀWAI PAPA ALAKAʻI KŪMAU KEʻENA KULEANA HOʻOKIPA O HAWAIʻI

HĀLĀWAI KINO A KIKOHOʻE IN-PERSON AND VIRTUAL

REGULAR BOARD MEETING HAWAI‘I TOURISM AUTHORITY

Pōʻahā, 24 Iune 2021, 9:30 a.m. Thursday, June 24, 2021 at 9:30 a.m.

Kikowaena Hālāwai O Hawaiʻi Hawaiʻi Convention Center Papahele ʻEhā | Lumi Nui C Fourth Floor | Ballroom C 1801 Alaākea Kalākaua 1801 Kalākaua Avenue Honolulu, Hawaiʻi 96815 Honolulu, Hawaiʻi 96815

ʻO ka hoʻopakele i ke ola o ka lehulehu ka makakoho The safety of the public is of the utmost nui. E maliu ana ke keʻena i ke kuhikuhina a nā loea no importance. Pursuant to expert guidance, HTA will ke kū kōwā, ka uhi maka, me nā koina pili olakino ʻē be following strict physical distancing, facial aʻe. Koi ʻia ke komo i ka uhi maka a me ke kū kōwā ma coverings, and other health-related requirements. nā keʻena a ma nā hālāwai. Face coverings and physical distancing are required in HTA offices and meetings.

Koi ʻia ka hōʻoia i kou olakino maikaʻi ma mua o ke Entrance to the Hawaiʻi Convention Center requires komo i ke Kikowaena Hālāwai O Hawaiʻi ma ka ʻīpuka o a health screening at the center parking garage waena o ka hale hoʻokū kaʻa. E pāpā ʻia ke komo ʻana o entrance. Persons with a temperature of over ke kanaka nona ka piwa ma luna aʻe o ka 100.4°F. Inā 100.4°F will be denied entry. If you are not feeling ʻōmaʻimaʻi ʻoe, e ʻoluʻolu, e ʻimi i ke kauka nāna e well, we urge you to contact a healthcare provider. kōkua iā ʻoe.

Hiki i ka lehulehu ke hālāwai pū ma o ka ZOOM. Webinar will be live streaming via ZOOM. E kāinoa mua no kēia hālāwai: Register in advance for this webinar:

https://us06web.zoom.us/webinar/register/WN_diEHz-QiSUCcd2nYImIugQ

Ma hope o ke kāinoa ʻana, e hoʻouna ʻia ka leka uila hōʻoia iā ʻoe me ka ʻikepili hoʻokuʻi hālāwai. After registering, you will receive a confirmation email containing information about joining the webinar.

Papa Kumumanaʻo AGENDA

1. Ho‘omaka Call to Order

2. Wehena Opening Cultural Protocol

3. ʻĀpono I Ka Moʻoʻōlelo Hālāwai Approval of Minutes of the May 27, 2021 Board Meeting

4. Hō‘ike Lālā Report of Permitted Interactions at an Informational Meeting or Presentation Not Organized by the Board Under HRS section 92-2.5(c)

5. Hōʻike A Ka Luna Hoʻokele Report of the CEO Relating to Staff’s Implementation of HTA’s Programs During May 2021: - Major Market Management including Destination Marketing Management Services

- Global Meetings, Conventions and Incentives (MCI) Program Management Services, Responsible Tourism

- Support of State COVID-19 Mitigation Efforts

- CEO’s Assessment of Priorities for the Next 30-60 Days

6. Hōʻike ʻIkepili Noiʻi ʻOihana Hoʻomākaʻikaʻi Presentation and Discussion of Current Market Insights and Conditions in Hawai‘i and Key Major Hawai‘i Tourism Markets

7. Hōʻike No Ka Hopena Anamanaʻo Kamaʻāina Presentation by the Omnitrak Group of the Resident Sentiment Survey Results

8. Hōʻike Anamanaʻo Kūikawā No Ka Maʻi Ahulau Presentation of the Hawaiʻi Tourism Authority’s Visitor Satisfaction & Activity Report (VSAT) Special COVID Survey

9. Hōʻike, Kūkākūkā A Hoʻoholo No Ka Papahana Hoʻokele Huliau*** Presentation, Discussion and/or Action on HTA’s Change Management Plan.***

10. Panina Closing Cultural Protocol

11. Ho‘oku‘u Adjournment

*** ʻAha Hoʻokō: Ua hiki i ka Papa Alakaʻi ke mālama i kekahi hālāwai kūhelu i kū i ka Hawaiʻi Revised Statutes (HRS) § 92-4. E mālama ʻia kēia hālāwai kūhelu nei ma lalo o ka § 92-5 (a)(4), § 92-5 (a)(8) and §201B-4(a)(2) no ka pono o ko ka Papa Alakaʻi kūkā a hoʻoholo ʻana i nā nīnūnē a nīnau i pili i ko ka Papa Alakaʻi kuleana me ko ka Papa Alakaʻi loio. He hālāwai kūhelu kēia i ʻole paulele ʻia ka ʻikepili a i mea hoʻi e mālama kūpono ai ko Hawaiʻi ʻano, he wahi i kipa mau ʻia e nā malihini.

*** Executive Session: The Board may conduct an executive session closed to the public pursuant to Hawai‘i Revised Statutes (HRS) § 92-4. The executive session will be conducted pursuant to HRS § 92- 5 (a) (2), § 92-5 (a)(4), § 92-5 (a)(8) and §201B-4(a)(2) for the purpose of consulting with the board’s attorney on questions and issues pertaining to the board’s powers, duties, privileges, immunities, and liabilities; to consider hiring and evaluation of officers or employees, where consideration of matters affecting privacy will be involved; and to discuss information that must be kept confidential to protect Hawai‘i’s competitive advantage as a visitor destination.

Ma lalo o ka māhele 531.5 o ka Budgetary Control Accounting Manual, Mokuʻāina o Hawaiʻi, he māhele ka ʻaina awakea o ka hālāwai. E mau ana ka hālāwai ma loko nō o ka ʻai ʻana, ʻaʻole hoʻi ia he wā hoʻomalolo.

Pursuant to Section 531.5, of the Budgetary Control Accounting Manual, State of Hawaii, lunch is served as an integral part of the meeting, while the meeting continues in session, and not during a break.

Kono ʻia ka lehulehu e komo mai i ka hālāwai a hoʻouna mai i ka ʻōlelo hōʻike kākau ʻia no kēlā me kēia kumuhana i helu ʻia ma ka papa kumumanaʻo. Hiki ke hoʻouna mai i nā ʻōlelo hōʻike kākau ʻia ma mua o ka hālāwai iā [email protected] a i ʻole ma o ke kelepaʻi. Inā pono ke kōkua ma muli o kekahi kīnānā, e hoʻomaopopo aku iā Carole Hagihara (973-2289 a i ʻole [email protected]), he ʻekolu lā ma mua o ka hālāwai ka lohi loa.

Members of the public are invited to attend the public meeting and provide written testimony on any agenda item. Written testimony may also be provided by submitting the testimony prior to the meeting by email to [email protected] or by facsimile transmission. Any person requiring an auxiliary aid/service or other accommodation due to a disability, please contact Carole Hagihara (973-2289 or [email protected]) no later than 3 days prior to the meeting so arrangements can be made.

3 Approval of Minutes of the May 27, 2021 Board Meeting

Hawai‘i Convention Center David Y. Ige 1801 Kalākaua Avenue, Honolulu, Hawai‘i 96815 Governor kelepona tel 808 973 2255 kelepa‘i fax 808 973 2253 John De Fries kahua pa‘a web hawaiitourismauthority.org President and Chief Executive Officer

REGULAR BOARD MEETING HAWAI‘I TOURISM AUTHORITY Thursday, May 27, 2021 at 9:30 am In-Person and Virtual Meeting Hawai‘i Convention Center 1801 Kalākaua Avenue, Honolulu, Hawai‘i 96815 MINUTES OF REGULAR BOARD MEETING

MEMBERS PRESENT: George Kam (Chair), David Arakawa, Kimi Yuen, Micah Alameda, Fred Atkins, Dylan Ching, Daniel Chun, Keone Downing, Kyoko Kimura, Sherry Menor-McNamara, Ben Rafter, Sig Zane

MEMBER NOT PRESENT:

HTA STAFF PRESENT: John De Fries, Keith Regan, Pattie Herman, Marc Togashi, Kalani Ka‘anā‘anā, Marisa Yamane, Caroline Anderson, Jennifer Chun, Carole Hagihara, Ariana Kwan, Lawrence Liu

GUESTS: Charlene Chan, Mike McCartney Nathan Kam, Erin Khan, Tom Laidlaw, Danny Ojiri, Representative Richard Onishi, Jay Talwar, Darragh Walshe, Irene Lee, Susan Webb, Tom Mullen, Mitsue Varley, Eric Takahata, Kara Imai, Mark Akamine, Mie Fujii, Teri Orton, Allison Schaefers, Jeffrey Eslinger

LEGAL COUNSEL: Gregg Kinkley

1. Call to Order and Pule:

George Kam called the meeting to order at 9:49 a.m. He confirmed the attendance of the Board by roll call.

2. Opening Cultural Protocol

Kalani Ka‘anā‘anā, HTA Director of Hawaiian Cultural Affairs & Natural Resources, noted that

a separate agenda item was created for the protocol usually included on the first agenda to give emphasis and to focus energies and intentions for the complex work ahead. Sig Zane asked the public to stand and join him with a chant to call for the presence, assistance, strengths and guidance of their ancestors in HTA’s decisions and actions.

3. Discussion and/or Action on HTA’s Code of Conduct and ByLaws Chair Kam noted that it would be good for the Board members, especially the new ones, to review the HTA’s Code of Conduct and Bylaws but no discussion or actions are to be taken at this time.

4. Approval of Minutes of the April 29, 2021 Board Meeting Chair Kam requested a motion to approve the April 29, 2021 Board Meeting. Kyoko Kimura said that her first name was misspelled and made a motion, was seconded by Sherry Menor- McNamara, and unanimously approved.

5. Report of Permitted Interactions at an Informational Meeting or Presentation Not Organized by the Board Under HRS section 92-2.5(c): Chair Kam asked whether there were any permitted interactions and there was none.

6. Report of the CEO Relating to Staff’s Implementation of HTA’s Programs During April 2021:

Chair Kam acknowledged John De Fries to give an update. Mr. De Fries noted that they will forgo going through the report due to the extensive agenda and will be happy to answer any questions.

Mr. Arakawa asked if he could share some of the takeaways of his conversations with the mayors and governor in a recent meeting. Mr. De Fries responded that they are invited every other week to provide visitor industry updates and situation analysis for summer as DBED estimated the U.S. market to be at 120% this year compared to 2019. He added that it is incumbent to pass the info to the head of states and to each of the island counties.

Mr. De Fries compared COVID 19 to the Cataclysmic Explosion (Big Bang) when it hit and that a space was created which was the beginning of something new. He symbolized the GMTs to the eight centers of astronomy around the planet which collectively discovered the “Powehi” or embellished dark source of unending creation in 2019. He related it back to the pule of Huliao which references the turning point in transformation and made a situational recap of historical activities since the pandemic. He said that he thinks about these discoveries and the immense scale that they are dealing with when he feels low. He made a recap of the situations going on with regards to travel and of the losses in funding, relocation of a

department and job positions that happened with HTA. He expressed his appreciation for the support of Rep. Onishi and the House that HB862 and HB200 went back into the conference committee after it was being passed. He stressed that though there may be differences among the staff and the Board, they are going to need each other moving forward, noting that there are segments of the community that thinks Hawai’i doesn’t need any marketing funding.

Mr. De Fries noted that he was invited to a Senate Congressional hearing, the Committee on Indian Affairs, where he was tasked to submit an oral testimony in relation to tourism economies that affect native peoples. He shared his testimony that mentions the native Hawaiian world where all life forms are connected and interrelated and of the various natural environments on each island. He said that Senator Murkowski testified about a community of 76 native Alaskans who were devastated for the last 15 months because their sole economy was based on cruise ships. Mr. De Fries noted that the federal government is taking these very seriously, be it at a micro or macro scale level and that funds are being directed to the Committee for the purpose of helping generate and regenerate economies affecting native people. He hoped that some of these funds can be translated to the work on DMAPs.

Mr. De Fries reported that Mālama was long embedded in HTA long before and that it is a boundless cultural value that applies to everything and it is a way of life. He noted that it is a way of life and not only a responsibility towards tourism but a responsibility to their home. He explained that this has been translated and extended into the work on DMAPS, where the community is encouraged and empowered to care for their own home on an effective and personal level. Mr. De Fries said that when the four pillars were approved in 2020, the direction is towards responsible tourism. He added that with it being recalibrated and refined, it resulted in a very responsible tourism model - regenerative tourism. He made a blind survey that 100% of the audience would like to see Hawaii’s natural resources and the bond that holds the community together in a better condition, the Hawaiian language broadly used and the cultural practices and traditions flourishing and from a branding perspective, Hawai‘i will be seen as a World destination. He explained that to make sure those happen, the activities like the DMAPs, strategic plans and brand messaging need to be accelerated He added that they need to learn how to deal with situations around simple things like wearing a mask and taking care of the people that are in their immediate vicinity.

Mr. De Fries reported that the U.N. dubbed Hawai‘i Green Growth as Local 2030, the first in the Asia Pacific region and first set of the islands in the world. He said that they are at the turning point and it’s incumbent to start getting the industry leaders, partners and brands to take action in achieving the goals and sustaining the needs to comply with the global brand. He added that they need to redirect the information in ways that protect their confidentiality

and yet demonstrate to the community that the largest industry is leading Hawai‘i for the sustainable future.

7. Presentation and Discussion of Current Market Insights and Conditions in Hawai‘i and Key Major Hawai‘i Tourism Markets

Chair Kam recognized Jennifer Chun to provide an update. Ms. Chun reported that April 2020 was the first period in 2020 where there was no visitor expenditure data and thus will use the April 2019 data for comparison. She noted that there was a 38% and 41% drop of the April 2021 visitor expenditures and visitor arrivals by air, respectively. She added that the U.S. West is spending more PPPD compared to 2019, and that average daily census is significantly down. Ms. Chun said that the preliminary April TAT collection was$35.1 million. The Fiscal 2021 year-to-date total was $128.9 million, which is 76.6% down compared to $551.3 million from the Fiscal 2020 YTD TAT collection. She added that the number of air seats for domestic and international are very much down compared to 2019, but significantly higher than 2020 and the number of flights are not up to the 2019 levels. She said that occupancy for vacation rentals was higher than the occupancy level for hotels but hotel room night supply greatly exceeds vacation rental supply. The hotel number is creeping up to the 2019 levels for the hotel room night supply.

Ms. Chun reported that travel agency bookings for the U.S. are relatively strong compared to 2019 with Q4 greater than 2019. She noted that bookings picked up in just the last month of booking. She said that there aren’t many bookings from Japan, Canada and Korea and there are no direct flights from Australia. She noted that the O‘ahu and Maui have a significant booking pickup and more than or nearly similar for the same period in 2019 for the U.S. market. She added that O‘ahu will have few U.S. bookings from any of the other markets for June. She said that though Kaua‘i has significantly more bookings than in 2020, with Q4 ahead compared to 2019. She said that Hawai‘i Island is nearly the same level with 2019 levels and there are Q4 activities for Canada as they are planning to bring flights back in theory towards the end of the year.

Ms. Menor-McNamara asked about the economic outlook of cruise ships. Ms. Chun responded that ships are starting to cruise again in November but traditionally, there aren’t many cruise activities in the fall.

8. Discussion and/or Action to Transition the Marketing Standing Committee Meetings into the HTA Regular Board Meetings

Chair Kam explained that the agenda is to dissolve the marketing committee’s separate

meeting and to include it into the Board meeting. He asked to share their insights. Chair Chun noted the benefits of incorporating the agenda items of the marketing meeting into the Board meeting so the Board could hear of these important conversations. Mr. Arakawa said that he supports the idea, and they can have another discussion about what committees to keep and dissolve moving forward. Chair Chun clarified if the thought isn’t about dissolving the committee but to incorporate the agenda items into the Board meeting. Chair Kam responded that it needs further discussion because under the current system, only six Board members are allowed to join the committee and the shift would allow the flexibility to call for a PIG if needed. Mr. Atkins agreed with the ability for Chair Chun to create a PIG if needed and said that it’s the right move, especially where the budget can’t entertain new marketing ideas or sports programs.

Mr. Rafter said that they may be losing sight of two things which are the inability for Chair Chun to call for a PIG which should be checked and the marketing committee function which is to look into the ROI of programs like sports and to align HTA with the strategic plan which can’t be efficiently done in a board meeting. He believes that it’s not the right long-term direction and it’s a matter of the marketing committee not asking enough questions that making it part of the Board will naturally prevent it from diving down into its core function. Mr. Arakawa said that the PIG comes with certain restrictions and agreed with Mr. Rafter’s concerns that they need to discuss it further.

Mr. Regan read a question from the public asking if the HTA Board and marketing committee meetings can remain hybrid for those not based in Oahu. Chair Kam responded that it was his intent but will have the Board to discuss and decide.

Rep. Onishi agreed with Mr. Rafter saying that the idea eliminates the whole purpose of having subcommittees dig deeper into issues and plan strategically. He said that the marketing committee can present to the Board the outcome of the meetings where the latter can decide after. He noted that as tourism comes back and other marketing groups are allowed to function, there would be seven different reports with questions to be dealt with. He added that it’s a disadvantage moving forward and that the PIG doesn’t fit well in marketing where decisions have to be made on a faster basis. Chair Kam thanked Rep. Onishi saying that they will have a more inclusive and deeper discussion this month about it.

Ms. Herman said that there wasn’t any opportunity to engage with any sports or marketing activities for the year 2020-2021 due to the recovery plans and that moving forward, the marketing meeting would be important when discussions and engagement for new opportunities arise.

9. Market Updates for USA, Japan, South Korea, Oceana and Canada Chair Kam recognized Daniel Chun to provide an update. Chair Chun turned over the floor to Jay Talwar to present first via Zoom call. Mr. Talwar reported that the the US economy is growing strong for the remainder of 2021 and 2022 with the reopening of the economy which is largely driven by the increasing percentage of fully vaccinated population across the U.S. and the State. He noted that this led to the softening of travel restrictions but a negative COVID-19 test result no more than three days before travel is required for international travel to the U.S. He said that U.S. arrivals to Hawai‘i are growing month-by-month. Mr. Talwar reported that there were over 1 million transpacific seats to Hawai’i coming in for the U.S. market in June with Kona, Oahu and Kauai having seats higher than they were in 2019. He noted that schools were announcing of going back to classrooms in the fall so that air seats will soften in August and September. He reported that almost 80%of people are now ready to travel across the country and competitors like New York & Company dropped $30 million into their marketing campaign while Visit California has put $24 million into their media campaign for spring. He added that the E.U. is opening up to travel and Italy, Greece and Malta are announcing that they’re open with others following very soon.

Mr. Talwar reported that they’re targeting the mindful traveller with the consumer strategy focusing on the Mālama Hawai’i Campaign. He noted that the private sector has a very positive feedback for this public funded initiative where hoteliers, airlines and volunteer programs are asking how to connect and get involved with the program. He added that they have 95 industry partners and some are using the Mālama Hawai‘i for their branding like the Kahala, American Way and Editorial Coverage, as well as PR and influencers. He said that Good Morning America featured the Hawaiian Islands all morning long with the messaging of helping regenerate and perpetuate the beauty of Hawai‘i with mindful visitors. He noted that social media posts of screenshots from the videos generated many comments showing that the messaging struck through. He added that people are led the Mālama section with sustainability issues, program partners on the volunteer and private industry side after they see the messaging on hawaii.com and that there’s a section for purchasing locally made products. He said that they’ve developed a Coop Program with 38 partners who provided funding.

Mr. Talwar reported that the overall Initiative for travel trade is to educate travel sellers with the most current information on the destination and thru the Mālama Hawai’i virtual event on May 12 to 13, virtual training programs and digital marketing program for travel advisors. He added that they partnered with TA Connect for smarter database, updates, and CRM marketing programs. He turned over the floor to John Reyes to report on MCI.

Mr. Reyes reported that together with the MCI customers, they talked about a very cost-

effective co-op advertising program to put products in front of the meeting customer. He noted that they will be targeting medical groups, scientific, high-tech, third party planners, financial and business services. He said that they’re excited about the Mālama Hawai‘i Program which is getting tremendous positive feedback. He noted that they are implementing a shop local program connecting local businesses with their made in Hawai‘i products. He said that they joined the Corporate Event Marketing Association (CEMA) and Professional Convention Management Association to grow corporate group business and increase third-party partnerships respectively. He added that they will continue to participate in IMEX America in November with a dedicated Hawai’i section where the world comes to shop for American Products and will explore the Hawai‘i app as a platform for “Shop Local '' with MCI Groups.

Mr. Reyes reported that Hawai’i scored 9.8 in a virtual event of 60 participants when asked about their likelihood to include Hawai’i in future destinations. He noted that incentive is almost 38% of all business that comes to Hawai‘i on the single property side. He said that tentatively, they got the fraternal associations interested for the citywide side and different groups for the single-property side. He added they are focused on reaching out to the right type of customers.

Mr. Talwar reported that the Go Hawai‘i app allows them the branding consistency and to communicate to the user a variety of information about the sites, availability, reservations, activities and local businesses He added that they will add more content with the app being recently launched. Mr. Talwar reported that they were in alignment with the DMAP initiatives and regenerative tourism and is fully behind the Mālama Hawai’i messaging with their audience targeting.

Mr. Alameda asked where the videos are going to be rolled-out. Mr. Talwar responded that there are a lot of digital delivery and can see it on YouTube together with the Mālama Hawai’i Campaign and Kuleana Campaign.

Ms. Menor-McNamara asked about what efforts were made to inform visitors of the updated rules and the visitor demographics providing positive feedback on the Mālama Campaign. Mr. Talwar responded that they have updated their guidelines and sent messages out after the Governor’s announcement, He said that the comments were gleaned from the one post they placed out there and so it's not a scientific study. He added that at most 25 didn't appreciate the Mālama Hawai‘i but the rest felt it was additional knowledge and gave them another reason to come back.

Mr. Atkins asked about the dark color of the video backdrop and masks. Mr. Talwar

responded that they did color corrections to brighten them but will look at it again and that they are already doing edits with regards to the masks.

Ms. Yuen asked about supporting the local non-profits with direct opportunities to become more self-sufficient. Ms. Anderson responded that they provided the list of the nonprofits agreeing to be put them on the website and worked hand-in-hand with HVCB on developing it. Mr. Ka‘anā‘anā added that they need to be cautious not to send a large audience to these small organizations and perhaps partner with agencies to do business development workshops to prepare the nonprofits for the visitors.

Ms. Kimura asked about the airline seats. Mr. Talwar responded that air seats seen in January and February are pre and summer is when they have a lot more seats particularly for the East Coast. He noted that airlines have either added more seats or gauged their planes. He said that they don’t have an understanding of how well the airlines are yielding their rate structure. Chair Chun added that most airlines are reporting near 100% return to pre- pandemic leisure travel and leisure bookings and also yields.

Chair Chun asked if there’s a way to show people to Mālama in a small way like reusable water and rideshare to change local sentiment. Mr. Talwar said that their approach was based on residents seeing visitors acting consistent with the community’s values. He noted that a lot of the volunteer projects are on property or in the resort area and that they’ll continue to work on it.

Mr. Atkins asked about the areas that will impact them with the major cut to the convention center. Mr. Reyes responded that they needed the budget in sales force the most that they were able to reprioritize to be able to engage customers in an efficient and effective manner.

Mr. Regan read a question from the public regarding the Go Hawai‘i app. Mr. Talwar responded that it will be downloadable from the App store and website but they’ll distribute it directly while awaiting launch on the App store.

Chair Chun recognized Eric Takahata, Managing Director of Hawai‘i Tourism Japan to provide an update. Mr. Takahata reported that an emergency declaration is still in place across the country to save the Olympics. He noted that economic loss is estimated at $9.2 billion and they are limiting visitors to 90,000 to the Tokyo. He added that the infection rate for Japan is 572 cases per capita (100,000) compared to about Hawaii’s 2,500. He said that from the Japanese perspective, the CDC’s Level 4 travel advisory to Japan is not seen as a concern and the outlook of industry partners, stakeholders, airlines, tour companies and Japanese government remains the same and US citizens are not allowed for over a year to the country.

Mr. Takahata reported that the vaccine rollout was slow in February but is ramping up. He noted that Prime Minister Suga stated that the goal is to have the majority of the population vaccinated by summer. He said that the negative PCR test result and 14-day quarantine is still required for all entry into Japan. He noted that ZipAir Tokyo is resuming their direct flights to Hawai‘i in July with additional flights in August and September while ANA is looking to return the Flying Honu service back to Hawai’i in August. He added that the Japanese carriers are picking August to cite the traditional “obon” season for Japan where goods and services become expensive.

Mr. Takahata reported that Hawai’i remains the number one travel destination for Japan with 51% wanting to come because they’ve visited before. He added that the Japanese love the idea of digital vaccine passports. He said that the Japanese Travel Ministry would not share the competitive destination in Asia but noted that it definitely has a beach and is offering 200,000 complimentary round-trip tickets to the Japanese for their initial promotion to restart travel. He added that Korea is in deep discussions with the Japanese government to host fam tours to come back to Korea and the government is hosting a lot of these. He noted that Taiwan has events planned in Japan and Australia has partnered with ELLE magazine for a gourmet video series and will do Australia-themed charter flights in Japan thru JAL.

Mr. Takahata presented the four major personas of the target audience which consist of the pono travelers, multi-generation families, new-norm workers, and couples/romance. Mr., Takahata noted that Mālama is a great way to pitch Hawai‘i to the Japanese since it’s a big and valuable concept for them. He noted that they will continue to use digital platforms to reach out to them. He said that the Aloha program with over 70,000 members was key for HTJ in helping spread their messages. He added that they will continue to approach media related to edu-tourism and sustainability. He said that they started partnerships with Hilton Grand Vacations, JCB Credit Cards and E Noa Tours for the Mālama initiatives. He added that they’re working in collaboration with the DBEDT for the true data initiative and have dissolved the Wear Aloha, Save Aloha promotion after getting much response from the public. He said that part of the Mālama strategy includes Surfing in Hawai‘i which is really important past the Olympics and Made in Hawai‘i Festival happening in November which showcases all the suppliers and Hawai‘i products.

Mr. Takahata reported that everyone is saying that they are targeting Q4 for the Japan Market. He noted that wholesaler package products will be available from July 1 arrival to Hawai‘i for Summer sales promotion. He added that JATA is considering a managed travel concept with vaccine tour as outbound possibility from Japan to Hawaii, and that the airlines are looking at increasing their seats for summer. He noted that JAL and ANA are airing the

Hawai‘i messaging video in all of their domestic flights free of charge. He said that the International Air Transportation Association (IATA) travel initiative has been adapted by ANA and JAL and will start working on Hawai‘i as a trial. He added that major wholesalers have targeted July 1st to the end of the year for their Hawai‘i package tours. Mr. Takahata said that JTB and HIS are all excited for the Honolulu Marathon happening this summer and a huge breakthrough for the Japanese market with an average of about 13,000 Japanese flying in to Hawai‘i for a one-week event. He noted that there are no co-op programs in place though there are a lot of requests from partners for it but wanted to be ready for it when the market starts moving. He said that they will continue to connect Hawai‘i stakeholders to all travel partners digitally. He added that they have the Hawai‘i Summit and Hawai’i Expo planned later this year.

Mr. Takahata reported that they see MCI to promote Hawai‘i as a learning destination with the Mālama platform and will be targeting three core segments such as incentive, edu tourism, and entertainment. He noted that they received inquiry for a large concert to happen in Hawai’i in December. He added that the ongoing strategy for MCI is to hit singles and doubles, get on base and every year, the Marathon, and then the Citywide with the larger numbers. He noted that the education initiatives will continue with the MCI market and are giving inputs about the DMAPs and regenerative tourism to the Japan market. He said that they have been working on fundraising for the NPOs in Japan for the ‘Iolani Palace and Bishop Museum. He shared examples of work done with DLNR and said that they’re happy to do the translations of materials with organizations in Hawaii. He said that the Aloha program is a big part of regenerative tourism with cultural events for Japanese consumers and businesses to directly connect with local practitioners. He added that content in their website includes products and is a big part of what they do. He said that Mālama is always going to be the overarching umbrella of all of their messaging.

Mr. Arakawa asked about what makes Hawai‘i unique, what support is needed and what needs to continue to be prepared for Q4. Mr. Takahata responded that the Hawaiian culture is the biggest differentiator from competing destinations. He noted that it resonates with their culture that they embrace it. He added that Japanese visitors are high spending, compliant and respectful and the bond between Japan and Hawai‘i even dates back to 1845 and beyond. He urged to not turn their backs on Japan but to keep the plugs on for they'll be coming back full force and contributing to the whole economy.

Mr. Downing noted that the relationship that Hawai’i have with Japan is as deep as family. He noted that they need to keep a small amount of water flowing to Japan at this time versus letting it go dry. He said to be careful with the promotion of surfing and to ensure a strong structure to keep the local residents from becoming more upset with the crowd.

Mr. Atkins asked about the lifting of the 14-day quarantine in terms of the vaccinated population, about travel conversion and about airline cost. Mr. Takahata responded that according to two Japanese carriers, it’s costing them $100,000 to $150,000 per round trip flight between Hawai‘i and Japan which translates to about $5000 per person cost for 30 to 35 person, excluding their expenses with the ground crew in both countries. He added that the shopping retail is also getting low numbers and ROI are bad. He added that they have a 90-day window for conversion.

Ms. Kimura asked about the Paralympics and if the forecast for the air seats are realistic and if the airlines are committed to it. Mr. Takahata responded that it was the Olympics and not the Paralympics. Ms. Varley added that nobody can commit anything that's why airlines are announcing every two months but they are committed to save at least 35 flights a month for Hawai‘i. She added that the next couple of months are going to be key for Q4. Mr. Takahata said that they’ll recalibrate their forecast for air seats.

Mr. Takahata recognized Dr. James Barahal, President of the Honolulu Marathon, to provide a testimony. Mr. Barahal said that people think that the marathon can’t be done without the Japanese but it’s actually the opposite. He noted that the Japanese people come over not to run the marathon but actually to help in all sorts of ways. He added that its long success with the Japanese market is attributed to the continuous relationships with back and forth loyalty, particularly with JAL which took decades to build. He urged the importance of keeping it going because the relationships are so important. He noted that the event actually wasn’t funded by HTA and the Japanese have a hard time understanding that it’s not supported by the government. He said that the relationships that they’ve built are so important and they must continue to show that loyalty and respect.

Daniel Ojiri of Outrigger Hotel provided a testimony saying that setting the high numbers aside, it’s about the relationship that was built with visitors for the last 50 years with 65% of them as repeaters. He said that this has to be nurtured. He added that the airline partners have developed Hawai‘i to be the number one destination of choice for Japan and that they’re losing money flying 30 people, but are keeping their commitments. He reminded of the investments done where ANA bought 3 Airbus A380 which is dedicated to Hawai‘i on top of big investments to support it. He noted that these planes are sleeping in the terminal and there’s another one waiting in France to be delivered. He said that they need to give that relationship attention and stay engaged with them when times are hard. He added that the relationship is something Hawai‘i should understand and these partners built the business for them. He urged them to consider continuing support for HTJ.

Chair Chun recognized the testimony of President Shimura of the JATA through video. Pres. Shimura said that JATA enjoyed 50 years of long standing bond with Hawai‘i and its tourism industry. He noted that despite the huge collective losses of members companies, JATA and its member companies remain committed to inbound and outbound travel to the state of Hawai‘i as evidenced by the large financial investments made by providing direct flight services and promoting and selling Hawai‘i travel products in Q3 and Q4. He noted that. Hawai‘i travel products will become the first overseas travel product for the recovery in the Japanese overseas travel market. He urged HTA to not dismiss the Japan market as doing so will cause adverse effects on Hawaii's positioning in the Japanese market. He added that they are seeing the light with the rapid rollout of the vaccinations and looks forward to continuing the friendly relationship with Hawai‘i and HTA for the long future.

Mr. Regan read a question from the public asking about the IATA travel pass. Mr. Takahata responded that the IATA travel pass is not yet linked to the Hawaii’s Safe Travels program.

Chair Chun recognized Irene Lee, Country Manager of Hawai‘i Tourism Korea, for an update. Ms. Lee reported that Korean residents vaccinated in Korea are exempt from the 14-day quarantine when they return from traveling and the government is reviewing possibilities for those vaccinated outside of Korea also. She added that the vaccine passport was rolled out in April to authenticate people’s vaccine information which is available on the App and Play store. She said that South Korea currently has about 8,000 active cases and that the fatality rate is decreasing from 1.4 to 0.5. She noted that about 7% of the population was vaccinated and the government’s goal is to attain herd immunity by November. Ms. Lee said that there are signs of airlines coming back to Hawai‘i such as Korean Air and Asiana Airlines by September. She noted that four major hospitals agreed to be Hawaii’s trusted testing partners and two additional facilities are waiting for AG and DOH to assign two additional facilities.

Ms. Lee reported that Maldives waived the quarantine requirement for vaccinated travelers from Korea highlighting the fact that 90% of their tourism industry people are vaccinated. She noted that Switzerland launched an online Travel Academy switching from offline to online training program. She added that Guam announced its vaccination status to over 50% of the population and that vaccinated Koreans are exempt from the quarantine. She said that they continue to target the high-value mindful visitors and are going after the millennial minded, mainstreamers and first-time visitors. She identified five key strategies for recovery which are as follows: revitalize market demand, position Hawai‘i as the top of mind destination, refresh the images of Hawai‘i with DMAP initiatives, educate travel trade and media partners for regenerative tourism and develop coops with airlines, travel agencies and OTAs. She added that they will be focusing on promoting with consumer publication partners and social media

channels and on Hawaiian culture and regenerative tourism with the Mālama messaging. She said that programs include digital campaign on Stories of Aloha and will be working with Naver, the Google equivalent in Korea, with content posts under HTA’s strategic pillars. She said that they will be partnering with Vogue magazine and collaborating with the consumer brands and influencers to increase branding.

Ms. Lee reported that their goal in the trade efforts is to drive high-value visitation and regenerative destination image in partnership with key airline partners, OTAs and wholesalers. She noted that trade programs includes live Commerce sites and TV home- shopping platforms. She added that their co-op plan still needs fine-tuning. She said that they will be holding an offline training event at the end of the year as part of the ongoing Aloha Specialist University program to train key agents.

Ms. Lee reported that MCI efforts will be geared towards securing and converting high-value MCA leads for 2020 to 2022 and will be conducting series of Meet Hawai‘i virtual meetings which targets the finance,, banking insurance, multi-level marketing, healthcare religions, manufacturing, education, entertainment groups, and technology sector. She noted that they will be incorporating the Mālama Hawai, Kuleana contents and the five pillars of the DMAP in all of their programs. She noted that they’ve connected local businesses to Hanjin, Korean Air’s mother company, for them to sell Hawaii’s local products on their website.

Chair Chun recognized Darragh Walshe, HTO’s Senior Account Director, to provide and update. Mr. Walshe reported that Oceana’s market and economic condition is strong with the strict COVID-19 elimination strategy of thorough contact tracing and testing program and short-term localized lockdown in cases of outbreaks. He noted that the exchange rates are stronger against the USD and some future visitors are pitching to travel to Hawai‘i to take advantage of it. He said that consumer confidence is very strong and that 6.69 million Australians have built up over two weeks of annual leave. Mr. Walshe noted that the reopening of tourism is linked to the COVID rollout. He noted that New Zealand will see a large proportion of the population being vaccinated by October and November, and PM Jacinda Ardern stated publicly hoping to open the country to vaccinated travelers prior to the completion of the vaccination program. He said that though press coverage states that Australian borders won’t reopen till mid-2022, the reality is they've already opened to New Zealand via the Trans-Tasman bubble which has proven successful in reopening borders. He added that they will almost certainly open to other destinations with the U.K. and U.S. as safe low-risk destinations. He added that a second bubble was created between New Zealand and the Cook Islands which have been equally successful. He noted that most key airline partners have schedules returning by December.

Mr. Walshe reported that HTO has a 3-stage approach by targeting travelers who seek authentic experiences and are cultural explorers (Care), focusing on brand and product aligned messaging (Aware), and providing platforms thru industry partnerships for the visitor to influence friends, family and followers (Share). He added that their consumer strategy of inspiration, brand depth and conversion is aligned with their brand, messaging, and the marketing assets which include the Mālama initiative that resonates with their targeted traveler. He added that their initiatives include their content based “Infinite Experiences” social media campaign and broadcast partnership based Cultural Tourism initiative taking place in the first half of 2022. Mr. Walshe noted that they have the same Care, Aware and Share approach for trade allowing them to focus around travel trade education, partnering with the right segments, product alignment, connecting local trade with the industry, and reaching their engaged clients. He added that key initiatives are around education, brand depth, connecting local trade with Hawai‘i industry, which includes the remodeling and re- launching of Trade Winds platform.

Mr. Walshe reported that Vintage Sport is finalizing their Golden Oldies Rugby tournament next May which will bring over 1000 participants. He noted that they have started embracing the Mālama initiative and have committed to working with local community organizations around sports. He added that a few of the people in one of photos on the Go Hawai’i Mālama and Volunteerism section were him and his family and his sister’s family where no model fees were necessary. He noted that they see opportunities around agritourism and promotion of local products for the DMAP initiatives. He said that the four pillars will continue to ground them and provide guidance, clarity and passion for what lies ahead.

Mr. Atkins asked about the HTO staff. He said that it’s only him as they’re working within the fixed costs structure. He said that they’re still aiming for the December month where flights will start operating again and hoping to have at least two months lead-in time before that to start increasing staffing and resources.

Chair Chun recognized Susan Webb of HTC to provide an update. Ms. Webb reported that the Canadian dollar is at the strongest at USD$0.82 with strong GDP with employment rate going down due to the government subsidies. She said that over 65% of Canadians are vaccinated and that the Prime Minister will seriously look at opening borders once it reaches 75%. She noted that the advisory panel for the government advised to remove the 14-day quarantine for any returning person who is vaccinated.

Ms. Webb reported that Canadian Air made a press release about an additional 165,000 seats for the Winter 2021 and 2022 and is opening new nonstop routes (Montreal to Honolulu, Toronto to Maui, and Calgary to Honolulu) all using their 787 Dreamliner Service which is

ideal for luxury business class type of passengers. She added that once the quarantine and hotel situation for returning residents in Canada gets lifted, they will start service back into Hawai‘i earlier. She said that they’re still targeting the mindful travelers and Canada is very mindful, wearing masks everywhere and very careful about social distancing which will respect the travel to Hawaii. She noted that Quebec will be a new market for this year. She said that their consumer strategy is 100% digital and will be constantly reviewing their focus for their messaging and retargeting situations. Ms. Webb said that they have partnered with Air Canada to target passengers with incredible amounts of miles to come to Hawai‘i using their points. She added that they’re working with Expedia, Costco Travel and the Baby Boomers with promotional partners in Canada like Zoomer radio.

Ms. Webb reported that everything they do, whether it's travel, trade consumer, or media with public relations will include the Mālama, the Kuleana themes, DMAP and responsible tourism messaging. She noted that they will be working with the number one media Outlets and doing some inaugural fam trips with media with the Air Canada flights from the three markets that they will be launching in December. She added that their travel trade strategy is all about education which is in French and English. She said that they are planning to relaunch the Aloha Canada Trade campaign on October 28 which has been very successful last year. She noted that they’re working with their co-op campaigns and partnerships with new niche operators like G Adventures and Intrepid Group. She said that Sunwing, a tour operator, will be launching into Hawai‘i this year. She added that they’re busy working on RFPs for the MCI market and have confirmed business even for September 2021 and through April next year with some tentatives.

Mr. Arakawa suggested that the Marketing Committee Chair and its consultants look into the changes with the KPIs since demographics, tourism and HTA are changing.

10. Discussion and/or Action on HTA’s Communications Plan

Chair Kam recognized Marissa Yamane to provide an update. Ms. Yamane reported that the unabridged Communications Plan has three phases where Phase 1 and Phase 2 have to do with HB862 and HB 200, and Phase 3 consists of the six month plan which has to do with visitors and residents with proposed topics for different months from June to November. She noted that for June, they sent out a letter to their distribution list on behalf of John De Fries informing of the rental car shortage and giving out tips like initially booking rental cars before making travel arrangements, renting from legal rental car companies and of other modes of transportation. She added that other topics include illegal vacation rentals (July), respecting Hawaii's culture (August), caring for the land (September), holiday travel (October) and giving and sharing Aloha (November) which are subject to change in such a fluid situation.

Mr. Alameda shared about a home running a rental car business out of their home in the Hilo neighborhood and thanked Ms. Yamane for providing awareness about these topics that they will start dealing with.

Mr. Downing said that the rental cars in the restaurant industry are booked out till July on reservations which really frustrates people so any awareness that can be done there would be good.

Chair Kam said that it used to be 3 to 4 days when people will book out of top restaurants but now it’s July/August and hopes to get the 50% capacity restrictions loosened up with the mass mandates. He added that he, Mr. De Fries and Mr. Ka‘anā‘anā initially went to the communities to get first-hand information from them and figured out solutions together to anticipate things. He noted that he will continue this activity and will go to other islands as well.

Ms. Yuen asked how the messages would be rolled out. Ms. Yamane shared the list of proposed methods which includes press releases, announcements, letters from Mr. De Fries and others and will be a combination of these.

Mr. Arakawa asked about the limitations of the responsibility assignment. Ms. Yamane said that it’s open to anyone and it’s better for more hands helping out.

11. Presentation and Action on the Proposed Statewide Reservation Management System to be Implemented in Partnership with DLNR and Other Key Stakeholders

Chair Kam recognized Kalani Ka‘anā‘anā to provide an update. Mr. Ka‘anā‘anā reported that conversations about a reservation system have been ongoing since two and a half years ago. He noted that they are engaged into talks with DLNR about how to manage access to sites that have been overrun or have crowding in a way that helps leverage technology and protect the natural resources while improving resident and visitor experience at the various parks, trails and assets they have. He said that they’ve come up with a technological solution as a means but had some complex challenges with the limitations of sites such as the presence or absence of parking areas and PUC commercial license among others. He said the DLNR is already implementing reservation systems in different communities and have been very successful for the process was long planned and community-driven. He added that much of the success comes from the “how” they do it and how HTA thinks about its engagement with DLNR and other partners. He noted that other challenges included confusing and difficult user experience with the information dispersed on different websites and the first come-first

served system in some parks leads to uncertainty of space or availability of park goers. He said that they need to figure out how to cater that user experience for the convenience of visitors.

Mr. Ka‘anā‘anā reported that their initial stakeholders have been the statewide partnership with DLNR and the program under DOFA. He said that initial conversations have been with the state and are thinking on how to engage counties as well to better manage the problems. He said that the build-out of the reservation system is estimated to get fully up and running by six months to a year. He added that the community engagement process will take time but if a system can be built so that the community is educated and their concerns are alleviated, then there’s a better chance to rollout a system that makes sense. He said that basing from the previous projects the estimated budget is $1.5 million which will then build out a modular system allowing them to roll out to other parks. He noted that the intent is not to build one system for all sites due to the varying complexities and limitations but to build the system up front and turn on the light switch for each of these Parks over time prioritizing hotspots and overcrowded places.

Ms. Yuen asked if it will be housed at HTA. Mr. Ka‘anā‘anā responded that HTA will help contract the project and hopes that they would manage it but would need information from the DLNR and other stakeholders on things that actually need to happen.

Mr. Atkins asked about the booking mechanism and the maintenance of the program. Mr. Ka‘anā‘anā responded that he envisioned something that tells all the messages that HTA is trying to get out like dos and don’ts along with the context, history and culture of the place. He noted that they will take a look at the existing concern on a previous project where it's putting DLNR over their spending ceiling and the special funds where those moneys are deposited

Mr. De Fries informed that according to a call from Senate President Ronald Kouchi, he will be taking the lead on the statewide system with the retirement of Sen. English and would like to voice his full support for it.

Mr. Downing asked if the reservation systems are intended for the HTA website. Mr. Ka‘anā‘anā responded that their main concern is that the sites are housed independently from each other and they’re still figuring out a solution for this whether GoHawaii houses it or something else.

Chair Chun asked about the interface and connectivity of the GoHawaii app and the reservation system app. Mr. Ka‘anā‘anā responded that DLNR had been working on it already

where the state parks division with KIRC control has been on a path to work toward their own statewide reservation system. He added that HTA’s original intention is on how to enhance and speed it up.

Chair Onishi clarified about the reservation system, the budget and maintenance. Mr. Ka‘anā‘anā responded that the idea was to help DLNR but sensed that the administrative control has no capacity to manage the implementation of the project, thus he offered to help with it. He said that DLNR doesn’t have the budget so they proposed it in the staff recommendation in Appendix D, item 14. He added that the intent is for a portion of the generated revenue will go back to the system maintenance until it becomes self-funding and that the fee schedules will be set by the DLNR including the maintenance. He said that there is no projection of the cost yet as they’re still at the phase of getting DLNR to buy in the idea.

Chair Onishi expressed concern that there isn’t a larger discussion that includes more people than just HTA and DLNR with the issue, especially with the number of bills introduced that would assess visitor fees which will impact the industry.

Mr. Atkins said that he had a conversation with Senator Kouchi mentioning that the user fees are being collected on another type of program He said that he will get back to the Board for more details.

Ms. Kimura asked if the budget for the system is created for the next fiscal year and about the control of fees. Mr. Ka‘anā‘anā responded that it hopes to be encumbered before the end of fiscal 2021 and that the fees can’t be controlled by HTA for the jurisdictions that have them will set it. He added that he will work hard not for DLNR but for the resources and for the communities sincerely asking HTA to ensure that the resources aren't run over.

Ms. Yuen said that the confusion begins if the program was meant to start collecting fees on top of the state park fees. Mr. Ka‘anā‘anā responded that the intention is to accelerate what DLNR is already doing and not to add more fees.

Mr. Downing said that he sees HTA as a big sibling who tries to pull the links together so they can be one unit and as a facilitator to help the common good for the state of Hawaii.

Mr. Ka‘anā‘anā agreed and added that HTA’s responsibility is the education piece wherein the existing websites are devoid of culture, history and enrichment. He added that HTA’s strength is the content creation and storytelling to be able to communicate the special and unique things about a place and help them understand where they're going to visit and with that appreciation, they go as a more respectful, traveler to that place.

12. Presentation, Discussion and Action on HTA’s Financial Reports for April 2021

Chair Kam recognized Keith Regan, HTA’s Chief Administrative Officer, to provide an update. Mr. Regan thanked the HTA team for the great job maintaining constraint and restraint on their spending without any TAT revenue which was shut off in 2020. He reported that there are a lot of information in the packet for the month of April which includes the tourism emergency trust fund at $5 million dollars and the cash balance of the TSF as of April 30, 2021 at $56.5 million, which includes the $5.1 million from the tourism emergency trust fund. He noted that it was down to about $1.3 million from the previous month with some activity during the month of April which is money based on encumbrances made on contracts. He added that there was about $1.6 million expenditure from the TSF of which $1.4 million is from FY 2021 and $195,000 from prior fiscal years. He noted that there were encumbrances carried out from the prior fiscal year and they’re doing their best in bringing down the encumbrances. He added that they received $354,000 revenue in April from the TSF due to investment revenue and credits taken back from contracts that are closing out. He said that the total year-to-date expenditures within the TSF is $22.2 million and within the TSF is $1.45 million from investment revenue and money back received from the contracts. He added that $312,000 was spent within April and almost $4 million current and prior fiscal year expenditures from the Convention Center Enterprise special fund. He added that they generated $5,000 revenue for the Convention Center Enterprise special fund but total year to date of $4.95 million primarily coming from activities that were happening at the Convention Center. He said that out of the $41 million budget that they have, 90% budget has been encumbered in some way, shape or form which is about $37 million that has been utilized by the team. He said that they project about $12 million unencumbered monies left within the TSF at the end of the current fiscal year. Mr. Regan noted that they have about $5.4 million from prior fiscal year encumbrances and $26.5million coming from FY 2021. He noted that the Tourism Emergency Trust fund of $5 million is held in the Bank of Hawai‘i and is in extremely safe investment with the lowest risk possible.

Ms. Kimura asked about the money spent on contracts. Mr. Regan responded that they have encumbered funds allocated for branding which they locked in and reserved so that it can be used to pay the contractors within that branding category.

Mr. Regan asked for the motion to approve the Financial Reports for April 2021 as presented. Daniel Chun made a motion and it was seconded by Micah Alameda and unanimously approved.

13. Report by the Budgetary Review Investigative Committee of their meeting held on May 18,

2021

Chair Kam recognized David Arakawa to provide an update. Mr. Arakawa reported that the general theme of the BRIC is to try to conserve as much money when tourism is down, look into things that will help them prepare when tourism comes back and start spending again when that happens. He noted that the HTA staff presented the 2022 budget under HB 862 and HB 200 and the committee looked at different scenarios for the $60million provided by the legislature and the existing HRS noted funding of $79 million, the possibility of changes in the amount based on a veto or other legislative action and changes in HTA's operations as outlined by Mr. De Fries in his presentation based on the legislative bills. He added that there are a lot of questions especially with the federal funding which are still under research but when the information is available, a resolution will be made and a recommendation will be presented to the Board in June for the 2022 budget.

Mr. Arakawa reported that the second issue was about the funding needed from the current fiscal year fund to address current programs before June 30. He noted that they asked the staff to prepare a list of program items needing urgent funding before June 30th which is attached as Appendix D on the resolution of the agenda. Mr. Arakawa said that the last issue would be the outstanding resolution to be presented in June for the 2022 budget based on the new legislation.

14. Discussion and Action on HTA Board Resolution 2021-2-1 including, but not Limited to, Research, Planning, Budgeting, Operations, Staff Roles and Strategy Initiatives

Mr. Arakawa clarified that the original resolution that was discussed by the BRIC was going to be a resolution about the 2022 budget and the resolution to be presented today is a different resolution. He recognized John De Fries to provide an update. Mr. De Fries emphasized that the resolution is a draft of the staff's recommendation for the Board’s review and consideration. He and Mr. Regan read the resolution denoting that with the impact of COVID-19 on the economy, tourism, government, policies, HTA and more, the HTA staff asked the Board to resolve five items which directs Mr. De Fries to take immediate action to review, realign and reorganize, the authority strategic plan budget and operations and to provide training and support to the authority staff, gives authority to the CEO to realign the HTA budget and utilize any unencumbered appropriation balance, enables the staff to submit a written summary of the proposed change management plan to the Board for approval at the June 2021 meeting and to submit written progress reports on the implementation of the approved change management plan monthly.

Ms. Yuen asked about the substantial changes for the strategic plan. Mr. De Fries responded

that they are not to alter the structure of the four pillars but to give more detail and refinement to the objectives and outcomes.

Ms. Menor-McNamara asked for clarifications on the funding for the realignment and reorganization of the strategic plan operations. Mr. Regan explained that if H 862 becomes law, any funds that are not encumbered by the end of the fiscal year would not be accessible to HTA after June 30, 2021 and would revert to the general fund of the State of Hawaii. He added that they will lose control of the fund if they don’t encumber the contracts that are listed in exhibit D by June 30. Ms. Menor-McNamara noted that those contracts are subject to the approval of the board. Chair Arakawa agreed saying that they’re asking for approval for the lists of 13 programs and contracts recommended by the staff as priority.

Chair Onishi asked for clarification about the information and the source regarding the funds not being accessible by HTA by July 1. Mr. De Fries responded that they learned about this during their conversations with DAGS Comptroller and DAGS Deputy AG, VP of Finance and Deputy AG George Kinkley. AG Kinkley said that Chair Onishi is probably right about the legislative intent but he thinks the legislature's intent was to allow expensing or encumbering from the TSF before they lose access to it. He explained that the problem is HB862 wherein the $60 million appropriation is an ARPA fund and no appropriation exist out of the TSF for HTA after June 30. Mr. Regan reiterated that the expenditure ceiling for the TSF does not continue into FY 2022.

Mr. Atkins asked if the Appendix is included in what they’re voting for with the resolution. Chair Kam responded that it’s part of the resolution and that they can review the content of the Appendix. Mr. Atkins said that he supports every item which is exactly what’s intended for the 2025 plan and it would be meaningful to be able to implement it. He added that this is an opportunity to be able to tell the community what tourism does for them with the $11 million going to programs where they can explain to the community where it’s going.

Ms. Kimura asked if they can have the approval by the next board meeting after the Governor’s decision on the bills by June 21st. Mr. Arakawa responded that it would be too late to do contracts if they wait for the next meeting.

Mr. Togashi said that he agrees to the amount that is asked to be approved are programs that they like to do regardless of whether HB862 is vetoed or not. He added that looking at the detailed budget worksheet put forth by the legislature for the $11 million of Convention Center appropriation, it shows that there's actually a decrease of $141 million dollars of spending ceiling that was previously in place that it's not a matter of adding the $11 million and adding to the $141 million but taking that $141 million dollars that previously existed,

and seeing a deletion of the said amount and then a reinsertion of the $11 million dollars. He added that there’s also HB 862 which provides $60 million as another vehicle of ARPA funds.

Mr. Atkins asked about the Center for Hawaiian Music and Dance, and if the special funds for it goes to the general fund. Mr. Togashi responded that the $5.95 million resides within the terms of TSF and that they don’t take any action on the general funds. Mr. Atkins asked if it should be encumbered as well. Mr. Ka‘anā‘anā responded that they’ve had plans to start a digital concept for the center as a proof of concept and would recommend encumbering it.

Chair Kam suggested including in the resolution the authority for HTA staff to be flexible in case there are other funds that may come and not just restricted to Appendix D. Mr. Arakawa asked AG Kinkley about the legalities of the line that will be added to the resolution. AG Kinkley responded that either way is legal and is up to what the board wants to do.

Ms. Yuen suggested loosening the language on the statewide reservation system to include other vendors and not just DLNR. Chair Kam agreed to just give a little more flexibility for interpretation so that when additional funds came up, they have the ability to encumber with those guidelines. He clarified that to encumber is not “spent” but it just gives one the permission to do so if needed

The Board discussed on how to add the revisions that they want to the resolution. Chair Kam clarifies that he totally agrees with the presentation and just wants to add flexibility in the language to be able to encumber funds that they like to encumber before the end of this fiscal year so that it doesn't go towards general funds. Mr. De Fries said that the bottom line is that the Board and staff don't want to lose funds because they did not encumber in time. He noted that with his conversations with the governor and BNF, they are still awaiting clarification from the U.S. Treasury about the possibility of the FY 2021 dollars not being dispersed with the signing of the ARPA MOU. He asked for the Board to consider what HTA would do if that were to happen where they added funds with an expiration on it that HTA could lose.

Chair Kam responded that that was the reason for the language that he was proposing and would defer to AG Kinkley on what language they can have in there that addresses such possibility. AG Kinkley responded that it’s not a legal problem but has to do something with what the board is comfortable delegating to the staff.

Mr. Arakawa asked for clarifications on where the funds are and where they’re coming from for he agrees with the 13 programs and the added clarification from Ms. Yuen. Chair Kam agreed with the proposed Hawaiian music and dance and said that he will depend on Mr. Togashi’ s response on the language that can be inserted for the Board to be comfortable.

Mr. Regan explained that the $5.9 million and change resides in the TSF and is not included in the $12 million anticipated carry over. He added that the Hawaiian Music and Dance wasn’t added to the list as they failed to consider what was going to happen to it until the meeting with DAGS. He added that it is a priority for the staff but just didn't make it to the list in time for the meeting.

The Board continued to discuss on ways to go about the resolution. Mr. Ka‘anā‘anā said that he preferred to add a line 14 on the agenda to the Appendix that would read “Center for Hawaiian Music and Dance’” and that the pillar is Hawaiian Culture amounting to $5, 948, 568 with him being the program lead. He added that he will provide a description after. The Board agreed with the amendment for line 14.

Chair Kam asked the Board what they are comfortable with for line 15 only until June 30. Mr. Downing said that he supports the staff because HTA won’t have the money anyway so and it’s good to spend it for Hawaii.

Chair Kam asked for a motion to accept the resolution as amended with the “TBD” in line 15. Mr. Togashi made a motion, seconded by Chair Chun and unanimously approved.

15. Closing Cultural Protocol

Chair Kam recognized Kalani Ka‘anā‘anā to do the protocol. Mr. Ka‘anā‘anā said that they are guided by Hawai‘i revised statutes asking them as state employees and the Board to exercise power on behalf of the people and in fulfillment of their responsibilities, obligations and service to the people and government that they may contemplate and reside with the life force and give consideration to the Aloha Spirit of kindness, unity and unity, humility and patience. He asked everyone to consider it today that they may conduct themselves with aloha and share it with everyone that they meet. He ended the meeting with a chant.

16. Adjournment:

The meeting adjourned at 4:31 pm.

Respectfully submitted,

______Sheillane Reyes Recorder 23 5 Report of the CEO Relating to Staff’s Implementation of HTA’s Programs During May 2021: - Major Market Management including Destination Marketing Management Services - Global Meetings, Conventions and Incentives (MCI) Program Management Services, Responsible Tourism - Support of State COVID-19 Mitigation Efforts - CEO’s Assessment of Priorities for the Next 30-60 Days

HTA CEO REPORT JUNE 2021

REPORT OF THE CEO June 24, 2021 Page 2

EXECUTIVE SUMMARY

Each month, the Hawai‘i Tourism Authority (HTA) provides this report as a resource to the Board and the public to better understand the activities and actions taken by the team in support of the organization’s overall mission. HTA’s 2025 Tourism Strategic Plan and its four pillars (Natural Resources, Hawaiian Culture, Community, and Brand Marketing) serves as a guide to the team in the various matters worked on during May 2021. Overall, this report provides insight into the actions conducted by the staff to implement the HTA budget previously approved by the Board.

Discussions with stakeholders and the State Department of Land and Natural Resources (DLNR) continue on the implementation of a statewide reservations system. HTA’s natural resource team worked to identify best practices and examples of systems that epitomize the goals outlined in our strategic plan as well as the various Destination Management Action Plan (DMAP) initiatives that this system would help fulfill. Furthermore, the team continues to refine the scope of work for the study of enhancing tour guide certifications and licensure regimes for tour guides.

Work continues by the Hawaiian culture team on the Merrie Monarch Festival as well as final contract evaluations for 2020 Kūkulu Ola awardees. Staff also has under its care projects which include the Merrie Monarch Festival Digitization, ‘Iolani Palace Repairs, Hawaiian Language Newspaper Digitization, Festival of Pacific Arts and Culture (FestPAC) and the Center for Hawaiian Music and Dance.

The O‘ahu DMAP Community Presentations were held on May 4 and 5 with more than 500 residents in attendance. Staff along with the counties and island chapters have been working on addressing DMAP actions for Kaua‘i, Hawai‘i Island and Maui Nui. Staff has also convened interagency meetings with the Department of Transportation (DOT-Airports), as well as various state, county and federal agencies to develop near-term actions regarding Hāna Highway on Maui.

In partnership with GoFarm Hawai‘i, Hawai‘i Agritourism Association, and O‘ahu Resource & Conservation Development Council, educational agritourism tours were held on the islands of Kaua‘i, Maui, Hawai‘i Island and O‘ahu targeted at farmers, agribusinesses, and the visitor industry. The purpose of these educational agritourism tours was to showcase best practices, encourage networking, and build capacity.

The branding team spent much of its time in May working with the Global Marketing Team on financial reviews and market conditions. There was an exciting announcement from the Korean market in late April. As of May 5, the Korean government has exempted its 14-day quarantine for Korean residents who were fully vaccinated in Korea. This progress will boost overseas leisure trip demand and Hawai‘i Tourism Korea expects Hawai’i to be one of the prioritized travel destinations for Korean nationals as they are able to travel between both countries without having to self-quarantine if they are fully vaccinated. Korean Airlines and Asiana Airlines are having talks about scheduling several flights during the Thanksgiving holiday to Hawai’i in September and regular flights from November. REPORT OF THE CEO June 24, 2021 Page 3

There was also positive news from Canada. Similar to Korea, if a Canadian citizen is fully vaccinated, they can be exempt from Canada’s 14-day quarantine when returning home. With this, both Air Canada and WestJet announced they will be scheduling flights back to Hawai‘i. There are talks that the first flight back to Hawai‘i will be operated by Air Canada in September.

Due to these positive market updates, HTA has decided to adjust the fixed-cost budgets for Hawai‘i Tourism Korea and Hawai‘i Tourism Canada, respectively, to allow for programing in those markets beginning in August.

HTA’s Tourism Research Division (TRD) published the April 2021 Visitor Statistics press release and monthly reports, air seat outlook for June – August 2021, April 2021 Hawai‘i Hotel Report, and April 2021 Vacation Rental Performance Report. In addition, TRD published weekly Destination Brand Index reports, the weekly Destination Brand Index – Responsible Traveler Segment, weekly Travel Agency Booking Trend reports, and the April 2021 Coronavirus Impact Report.

REPORT OF THE CEO June 24, 2021 Page 4

I. NATURAL RESOURCES PILLAR

1. Aloha ‘Āina (Natural Resources) Program HTA program staff are in the process of checking in final reports and deliverables from Aloha ‘Āina programs. There are 34 projects that have concluded the 2020 cycle despite the rough year. Most projects were completed at the end of calendar year 2020. However, a few were granted no-cost extensions. Staff has struggled with securing compliant CVCs from contractors which is delaying contract close outs and final payment processing.

2. DLNR Partnership Nā Ala Hele staff continue to implement various portions of the project to enhance the resident and visitor experience statewide across 128 trails spanning approximately 855 miles. This is a FY 2020 project that is expected to conclude at the end of 2021. HTA staff were notified that Bill Stormont will be the interim Nā Ala Hele program manager. Staff will continue to work with the Department of Land and Natural Resources (DLNR) leadership as they work to replace the position. HTA also cancelled MOA 20172 S2 – Alaka‘i Boardwalk because DLNR was unable to implement the project even after being granted no- cost extensions. The MOA was originally signed in December 2019 and with extensions work was to be completed by April 30, 2021. All funds awarded ($59,000) will be returned to HTA.

3. Park Reservation and User Fee Program HTA staff have continued to hold meetings with the DLNR, representatives of the Office of the Governor and others to understand the opportunity to implement a state parks reservation system. Through these discussions the team learned that there is a desire to have other assets included in the system beyond just state parks, that could include state trails, county parks and other prominent points of interest. DLNR has paused the rollout of their system until the opportunity is identified and an agreement is reached. It is becoming apparent that a site may need to be built that focuses on the user experience and education that links to existing systems on the back end. There is more work to come.

4. Tour Guide Certification and Licensure HTA staff has revisited the work plan for this project and is in the process of reevaluating its merit at this time. In partnership with the University of Hawai‘i (UH) at Mānoa School of Travel Industry Management (TIM) the team plans to study what is currently on the books and what exists, for a better understanding of what other jurisdictions are doing as best practices. The HTA team believes there is an opportunity to study this now for implementation in future years. Staff anticipates having a final report by the end of calendar year 2021. Due to the delays in negotiating the agreement, shifting budget and other factors beyond HTA’s control, the team will be moving this project to the Native Hawaiian Hospitality Association (NaHHA) for implementation as a part of their CY22 contract which is funded from FY21.

REPORT OF THE CEO June 24, 2021 Page 5

II. HAWAIIAN CULTURE PILLAR

1. Kūkulu Ola Program HTA program staff are in the process of checking in final reports and deliverables from Kūkulu Ola programs. There are 33 projects that have concluded the 2020 cycle despite the rough year. Most projects were completed at the end of calendar year 2020. However, a few were granted no-cost extensions. Similar CVC issues for these contractors is also delaying final contract closeouts and final payments.

2. Native Hawaiian Hospitality Association HTA and the Native Hawaiian Hospitality Association (NaHHA) continue to build stronger ties between the Hawaiian community and the tourism industry. NaHHA continues to support HTA staff with Festival of Pacific Arts and Culture (FestPAC) planning and coordination. NaHHA also held the first two virtual gatherings of Ka Huina 2021 in May. Due to the pandemic, Ka Huina is being held virtually as four half-day events over several weeks. The series focuses on Community, Culture, Regenerative Tourism, and Sustainability. HTA staff have also begun discussions with NaHHA on a new expanded scope of work that responds better to current realities in the industry. Staff hopes to have the new scope of work decided in June 2021.

3. Native Hawaiian Festivals and Events

13TH FESTIVAL OF PACIFIC ARTS AND CULTURE (FESTPAC) The commission for the 13th FestPAC continues its planning and HTA staff are supporting efforts around marketing, public relations, and communications for the festival. The festival commission is now focused on the development of the programming schedule of practices to be offered as part of the festival. Further, the commission monitored SB 696 SD1 HD1 which is needed to extend the life of the commission through August 31, 2025. The bill is now with Governor Ige for his signature. The Governor also announced the appointment of Maenette Ah Nee-Benham to fill the vacancy on the commission after the resignation of Commissioner Monte McComber.

MERRIE MONARCH FESTIVAL AND DIGITIZATION PROJECT Event organizers are engaged in planning for the 2021 Merrie Monarch Festival to be held in Hilo, Hawaiʻi. June has been confirmed as the month for the event but the broadcast will be aired later in the first week of July. The County of Hawaiʻi has conditionally approved the use of the Edith Kanaka‘ole Stadium. The digitization work is ongoing and expected to be completed by June 2022. The work of digitizing the collection has been slowed due to the COVID-19 restrictions as well as the tedious nature of the work.

REPORT OF THE CEO June 24, 2021 Page 6

4. Center for Hawaiian Music and Dance During the 2021 legislative session, HTA tracked several bills which would affect the Center for Hawaiian Music and Dance (CHMD). HB321 HD1 and SB926 repeal the allocation of TAT funds to the CHMD. HB1165 and SB916 SD1 amend the language that allowed for the development and operations of the Center for Hawaiian Music and Dance and leaves its location undetermined. The only remaining bill in Conference is HB 321. HTA staff has paused exploration of a digital/virtual exhibit component to begin with, as clarity is obtained on what will allow the state to meet the challenges faced with the economic recovery from COVID-19.

5. ʻŌlelo Hawaiʻi – He Aupuni Palapala: Preserving and Digitizing the Hawaiian Language Newspapers In response to COVID-19 and the various county and state restrictions, HTA staff have finalized a supplemental contract with Bishop Museum that allows more time for work to be completed on “He Aupuni Palapala: Preserving and Digitizing the Hawaiian Language Newspapers.” The goal of this project is to digitize all Hawaiian language newspapers (in all repositories and personal collections). The State of Hawai‘i benefits to support programs that preserve and increase access to rare and historical Hawaiian language newspapers to further the understanding and knowledge contained therein. By making readily available these important documents for education, research, and preservation, the project will provide the state with a completely unique and robust resource for Hawaiian language learners and workers to strengthen ʻōlelo Hawaiʻi. HTA staff were also informed that the scanner, a critical missing tool, needed to advance this work has been ordered. Bishop Museum staff and partner organizations have begun indexing the collections across repositories. Lastly, the project received some positive coverage in local media recently as well.

6. ʻIolani Palace Repairs HTA staff continue to monitor the work for the project that began in August 2020 with no updates at this time. The work is behind schedule for completion as there were some challenges with the timeline due to the pandemic and materials that were damaged in transit needed to be reordered and reshipped. The construction schedule is subject to further changes based on the contractors’ assessments.

REPORT OF THE CEO June 24, 2021 Page 7

III. COMMUNITY PILLAR

1. Community

COMMUNITY-BASED TOURISM PROGRAM – DESTINATION MANAGEMENT ACTION PLANS (DMAPS)

Two O‘ahu DMAP Community Presentations were held on Zoom on May 4 and 5 with more than 500 residents in attendance. Below is feedback from the presentation evaluation survey.

REPORT OF THE CEO June 24, 2021 Page 8

O‘ahu residents were able to review the proposed draft actions developed by the O‘ahu Steering Committee. HTA used an online input form for the public to provide more detailed input and feedback. The deadline for feedback was May 21, 2021. The results are available on HTA’s website: https://www.hawaiitourismauthority.org/media/7377/oahu-dmap-input-survey-results.pdf. The next O‘ahu DMAP Steering Committee meeting will be on June 10 during which the committee members will review the community input and determine the top actions for the DMAP. The O‘ahu DMAP process is on scheduled, and the final O‘ahu DMAP is planned to go before the board for approval at the July meeting.

Below is an update on activities done to support the implementation of the various DMAPs.

Kaua‘i DMAP • HTA provided funding to support a visitor information brochure that was developed by the Kaua‘i Visitors Bureau and distributed to arriving visitors at Līhu‘e Airport. • HTA provided funding to support a Kaua‘i Made focused affiliate membership retail and networking space that will service local small businesses with a focus on Kauai Made products. The space will be utilized for product, direct access to business networking, educational workshops and resources that help stimulate sustainable growth in Kaua‘i Made and other businesses. • HTA will support the County of Kaua‘i’s efforts in changing modes of transportation as well as educating and marketing alternative modes to move visitors throughout the island. This is in response to the rental car inventory shortage and lack of substantial alternative transportation options (i.e. The Kaua‘i Bus has limited service and there’s a low supply of rideshare drivers). • HTA will be continuing its partnership with GoFarm Hawai‘i in cultivating agritourism for the island and holding an additional agritourism tour for interested farms and agribusinesses seeking to expand or enhance their agritourism efforts.

Maui DMAP • HTA convened two interagency meetings with the Maui mayor’s office, the Maui Police Department, the county’s planning department, DLNR, the Department of Transportation – Highways Division, Haleakalā National Park, and MVCB to come up with immediate solutions to mitigate the visitor impact in Hāna. As a result of the meetings: o DOT-Highways is creating signage warning drivers of the $35 no parking citations and $200 parking violation surcharge under Hawai‘i Revised Statute 291C-111. The signs are being installed to reduce the temptation for drivers to illegally park on Hāna Highway. Illegal parking along the only road to Hāna has caused numerous safety concerns. MVCB and the Mayor’s Community Liaison also informed the rental car agencies about this. o MVCB will be creating visitor information pieces about Hāna. o Maui Police Department will also be stepping up presence in the area. o The state DLNR also reopened two of its comfort stations that were closed in Hāna. REPORT OF THE CEO June 24, 2021 Page 9

• HTA will be continuing its partnership with GoFarm Hawai‘i in cultivating agritourism for the island and holding additional agritourism tours on Maui, Moloka‘i and Lāna‘i for interested farms and agribusiness seeking to expand or enhance their agritourism efforts. • HTA is supporting MVCB with the creation of island-specific rack cards (Lāna‘i and Moloka‘i) for the Mālama Maui County Pledge. • In partnership with the Lāna‘i Culture and Heritage Center, HTA is supporting the enhancement of the Lāna‘i Guide app which will provide more content, including places that visitors should not go to.

Hawai‘i Island DMAP • Waipi‘o Valley is one of the identified DMAP hotspots – an area/site that attracts visitors due to its popularity, and may result in overcrowding, congestion, degradation of resources, safety hazards, and a negative experience for both the resident and visitor. HTA, the County, and Island of Hawai‘i Visitors Bureau (IHVB) identified this was a priority hotspot to work on to mitigate impacts. IHVB will be taking the lead to host a meeting among all stakeholders, including valley residents, utilizing a third-party meeting mediator to develop an action plan that addresses and prioritizes issues and solutions. HTA will provide funding to support the mediation process as a first step. • Papakōlea (Green Sand Beach) is located on lands managed by the Department of Hawaiian Homelands (DHHL), and is another identified DMAP hotspot. HTA convened a meeting with DHHL, the County and IHVB to discuss safety and protection of natural resources at Papakōlea. A follow up meeting will be held in early June. • HTA is in discussions with DLNR (Division of Forestry and Wildlife's Nā Ala Hele Trail and Access Program) for a pilot stewardship program to mitigate impacts at Pololū Valley trail, another hotspot area. HTA is looking to support part-time stewards to provide education, prevent unwanted behavior, and ensure safety of users to the area. • HTA will continue its partnership with GoFarm Hawai‘i in cultivating agritourism for Hawai‘i Island and hold two additional agritourism tours for interested farms and agribusiness seeking to expand or enhance their agritourism efforts.

AGRITOURISM In partnership with GoFarm Hawai‘i, Hawai‘i Agritourism Association, and O‘ahu Resource & Conservation Development Council, educational agritourism tours were held throughout the state targeted at farmers, agribusinesses, and the visitor industry. The purpose of the tours was to showcase best practices, encourage networking, and build capacity. Due to COVID-19 gathering restrictions, there were 10 people per tour. Below are the agritourism businesses that were visited: Island Location Features Ag Features Punakea Palms, Maui Kuʻia Chocolate, Coconut, dragon fruit, Maui, May 8 Lahaina - Olowalu Moku Roots, Maui Dragon Fruit Farm chocolate, farm to table REPORT OF THE CEO June 24, 2021 Page 10

Bird and Bee Hawai‘i, Hāmākua Harvest, Hawai‘i Island, Honokaʻa Chocolate, Honomu Goat local honey, chocolate, goat May 16 Hāmākua Dairy cheese, local food vendor East - South Shore Lydgate Farms, Leongʻs Meat House, chocolate, local food vendor, Kaua‘i, May 22 (Kapaʻa - Lawai) Moloaʻa Organica‘a, Common Ground diversified ag Hawai‘i made products and macadamia nuts, chocolate, East - Kaneʻohe - Tropical Farms Mac Nuts, Opala Farms, mushrooms, local food O‘ahu, May 29 Waiahole 21 Degrees Estate, Waiahole Poi Factory vendor

COMMUNITY ENRICHMENT PROGRAM (CEP) HTA staff continues to work with the remaining 2020 CEP contractors to obtain final deliverables and close out 2020 contracts.

HOSPITALITY INDUSTRY UPDATES (COUNTY) HTA recognized the need to connect stakeholders from both the public and private sectors to improve awareness and build an understanding of the current state of the visitor industry related to COVID-19. As such, HTA staff coordinates with each county to identify a day and time that is most convenient for the respective mayor to participate in a hosted meeting with government officials, association leaders, contract partners and the visitor industry.

2. Communication and Outreach

NEWS RELEASES/REPORTS/ANNOUNCEMENTS • Report: HTA Hawai‘i Hotel Performance Report for April 2021 (May 20) • Report: HTA Hawai‘i Vacation Rental Performance Report for April 2021 (May 26) • News Release: Hawai‘i Visitor Statistics Released for April 2021 (May 27) • Announcement: Message from John De Fries (JDF) – Traveling Responsibly to Hawai‘i During the Rental Car Shortage (May 27)

NEWS BUREAU • Interviews and press conferences: 18 • Local and national media relations: 29

HTA’S DESTINATION MANAGEMENT ACTION PLANS • Drafted answers to the O‘ahu DMAP community presentation questions • Attended the O‘ahu DMAP community presentations • Drafted and distributed e-blast reminders for the O‘ahu DMAP community presentations

REPORT OF THE CEO June 24, 2021 Page 11

COMMUNITY INITIATIVES AND PUBLIC OUTREACH • Community liaison and communications: 26 • Coordinated, wrote, and edited the new HTA e-bulletin, which is set to launch in mid-June • Drafted and provided JDF quote to Department of Land and Natural Resources for Mānoa Falls Trail Opening news release • Drafted and distributed e-blast via Constant Contact on WaiWai Futures: Economic Self- Determination webinar in which JDF was a panelist • Drafted and distributed e-blast via Constant Contact on Ka Huina: Culture session presented by the Native Hawaiian Hospitality Association in partnership with HTA • Pitched Ka Huina Conference to Pacific Business News and Hawai‘i Public Radio

CRISIS COMMUNICATIONS • Responses regarding travel to Hawai‘i: 37 • International inquiries: 2 • Frequent updates to HTA’s website – COVID-19 alerts page

CRISIS COMMUNICATIONS – PEST CONTROL TREATMENT • Met with representatives from the Hawai‘i Convention Center, Gov. Ige’s office and DBEDT • Provided strategic counsel and messaging • Drafted news release that was distributed by Gov.’s office due to DLIR PIO being out

HTA’S SOCIAL MEDIA Paid Posts on Facebook • Post of the O‘ahu Destination Management Action Plan online webform. Flight dates from May 18-21. Total Reach 9,026 | Total Engagements 766

Facebook • Number of followers: 18,098 (+27.86%) • Engagement rate: +226.03% • Daily page engaged users: 6,420 • Posts: 31

Instagram • Number of followers: 4,467 (+41.45%) • Engagement rate: +61.22% • Number of engagements: 79 • Posts: 3

Twitter • Number of followers: 37,324 (+1.14%) REPORT OF THE CEO June 24, 2021 Page 12

• Engagement rate: +250.00% • Number of engagements: 7 • Posts: 4

LEGISLATIVE • Created bullet and talking points for JDF for HB862 and HB200 ahead of interviews

INTERNAL COMMUNICATIONS • Communications with state and county departments: 32 • Edited HTA reports/press releases/documents • Provided talking points to HTA’s staff • Drafted a letter to the visitor industry on behalf of JDF for O‘ahu Concierge Magazine • Edited the Hawai‘i Convention Center’s press release on the prayer breakfast • Updated HTA’s communications plans (short-term for HB862 and HB200 and long-term to address tourism industry concerns) • Put together the Native Hawaiian tourism report and appendix for JDF’s testimony before the U.S. Senate Committee on Indian Affairs • Provided marketing recommendations to Kalani Ka‘anā‘anā on the Surfing Committee’s campaign request

3. Safety and Security

VISITOR ASSISTANCE PROGRAM (VAP) HTA currently has four contracts, one in each county, to provide funding support for the Visitor Assistance Program. These contracts are:

• CON 17031 (S6) – Visitor Aloha Society of Hawai‘i (O‘ahu) was issued a contract on December 30, 2020, Supplemental #6, which encumbered funds for three-fourths of calendar year 2021 in the amount of $277,500 (April 1, 2021 to December 31, 2021). HTA is in the process of executing a contract extension to fund this program from January 1, 2022 to December 31, 2022.

• CON 17032 (S5) – VASHI – Island of Hawai‘i VAP was issued a contract on December 30, 2020, Supplemental #5, which encumbered funds for three-fourths of calendar year 2021 in the amount of $127,500 (April 1, 2021 to December 31, 2021). HTA is in the process of executing a contract extension to fund this program from January 1, 2022 to December 31, 2022.

• CON 17033 (S4) – VASK – Kaua‘i VAP was issued a contract on December 30, 2020, Supplemental #6, which encumbered funds for three-fourths of calendar year 2021 in the amount of $41,250 (April 1, 2021 to December 31, 2021). HTA is in the process of executing a contract extension to fund this program from January 1, 2022 to December 31, 2022. REPORT OF THE CEO June 24, 2021 Page 13

• CON 17034 (S4) – MVCB – Maui VAP was issued a contract on December 30, 2020, Supplemental #6, which encumbered funds for three-fourths of calendar year 2021 in the amount of $41,250 (April 1, 2021 to December 31, 2021). HTA is in the process of executing a contract extension to fund this program from January 1, 2022 to December 31, 2022.

During the month of May:

• Maui County’s program handled 15 cases and helped 30 visitors (year-to-date: 48 cases/ 76 visitors). This included visitors primarily from the U.S. West, U.S. East, and Japan markets. The program team also attended meetings at the EOC, Police Commission, Airport, VOAD and car rental committee meetings. The industry assisted with $4,000 of in-kind contributions.

• Hawai‘i County’s program handled 18 cases and provided assistance to 49 visitors (year-to-date: 91 cases/ 223 visitors). This included visitors primarily from Texas, California, Maryland, New Hampshire and Minnesota.

• City and County of Honolulu’s program handled 69 cases and helped 157 visitors (year-to-date: 302 cases/ 812 visitors). This included visitors from California, Georgia, Washington, and other areas of the United States.

• Kaua‘i County’s program handled 12 cases and provided assistance to 32 visitors (year-to-date: 36 cases/ 93 visitors). All of the visitors assisted were from the U.S. East/West markets.

SNORKEL SAFETY STUDY The HTA executed a contract with the Hawaiian Lifeguard Association (CON 19171) for $131,000 to conduct a snorkel safety study. This two-year study was designed to assess the causes and risk factors in snorkel-related fatalities and near fatal drownings. Hawaiian Lifeguard Association (HLA) collected and analyzed data, conducted scientific research, conducted surveys and interviews, and consulted with experts in the appropriate fields. The State of Hawai‘i Department of Health and the City and County of Honolulu lifeguards collaborated on the study as well. A final report was received from the HLA and will be published on HTA’s website.

REPORT OF THE CEO June 24, 2021 Page 14

IV. BRAND MARKETING PILLAR

1. Major Market Area (MMA) Contracts Due to the COVID-19 pandemic, the 2020 contracts for Europe and Southeast Asia markets were canceled, effective April 17, 2020. On April 9, RFP 21-04 Europe MMA was canceled due to changing fiscal priorities in response to the COVID-19 crisis. In addition, due to 2021 budget cuts, the contracts for China and Taiwan were terminated for 2021.

The Oceania contract is already working under a fixed cost. Qantas currently plans to open its operations in November or December 2021. HTA plans to resume branding and marketing in September or October 2021 if the schedule stays intact. Australia’s borders are still closed with strict safety protocols in place. The bubble travel concept between Australia and New Zealand had begun with success so far.

Japan is undergoing a resurgence of COVID-19 cases, thus the prime minister called for the country to go back into a state of emergency. With the Olympics happening only a few months away, their focus was then pulled away toward operating a successful Olympics. However, many Japanese citizens are asking for the Olympics to be cancelled due to the pandemic in their country. Japan’s borders continue to be closed to foreigners.

Korea and Canada are moving to open travel. Both countries have announced that fully vaccinated citizens when returning from travels can be exempt from the 14-day quarantine. HTA is focusing on starting up media promotions for both countries in August.

For the U.S. market, HVCB has started its media promotion this month with great success. The Mālama programs are being promoted in all messaging. With the combination of the pent-up travel demand, special airline fares and hotel discounts, along with travel agent and wholesaler promotions, travel to Hawaii is coming back strong for the summer months. Hawai‘i is the perfect destination as the travelers are looking for a safe place with amazing natural resources, open spaces, fresh air and the Hawaiian culture. These are all components of messaging to the travelers.

Currently, flights are operational and coming in to Hawai‘i from the U.S. mainland, Japan and Korea. The domestic airlines continue to increase operations, which is an encouraging sign of travel demand.

HVCB completed the new version of its Mālama Hawai‘i videos and has started to send this messaging out through its media campaign.

Regarding China and Taiwan, there are presently no talks occurring about the starting of operations by China Eastern Airlines from China to Hawai‘i, nor China Airlines from Taiwan to Hawai‘i. As proactive messaging in these countries needs to begin, HTA will reach out to DBEDT on opportunities to collaborate with the staff that is in market in each country. REPORT OF THE CEO June 24, 2021 Page 15

2. MMA Marketing Plans The Market Management team is ensuring that the focus of “Regenerative Tourism” is thread through the marketing plans from HTA’s Global Marketing Team. This action runs parallel to HTA’s brand marketing, and thus Hawai‘i will be set up well to welcome the next generation of targeted travelers – mindful travelers – who are already conscious of and respect destinations that care for their natural resources. The GMT continues to share images of Hawai‘i’s natural beauty and wide-open spaces in their respective markets to keep Hawai‘i top of mind.

3. Industry Partner Meetings HTA continues to communicate with its industry partners by providing COVID-19 related information daily and conducting Zoom meetings. At the same time, the team receives updates from industry partners regarding the state of their situation. HTA also assisted the Hawai‘i Lodging and Tourism Association (HLTA) with travel industry vaccine initiatives by informing the Japanese travel agents, land operators and wholesalers the dates and times of locations their employees can go to get vaccinated.

In May, some of the industry updates the team received include the following: • Most hotels are going back to their normal cancellation policies. • Summer is looking very strong, and many hotels will make or beat their budgets. • OTA bookings are coming in strongest for the island of O‘ahu. ALG is focusing on O‘ahu also as hotel inventory for the summer's months are getting scarce. • AC Wailea will open its doors in June and booking pace shows a 70% occupancy for the summer months.

4. Communication The branding team continues to hold bi-weekly meetings with the Global Marketing Team, receiving information on in-country activities, Hawai’i messaging and flight plans into Hawai‘i if they had not yet started. In addition, discussions also included marketing campaigns, educational programs, Mālama- centric programs and key measures. HTA staff also had the GMT give updates and information to the Island Chapter teams.

Pattie Herman (PH) continues the monthly Zoom call with John Reyes, senior vice president and chief MCI sales officer of HVCB, to discuss group activities and possible opportunities both in citywide and single- property groups.

HTA staff held the first Surfing Advisory Committee Meeting, which was very productive in hearing everyone’s desired messaging on Hawai’i as the birthplace of surfing.

HTA staff also attended a meeting with Senator Wakai regarding promoting Hawai‘i-made, sourced and grown products. Everyone agreed that having a seal of approval on the product as such would be a great plan. REPORT OF THE CEO June 24, 2021 Page 16

HTA staff also had budget meetings to discuss several different scenarios surrounding HB862. In addition, PH continues to work with the Global Marketing Team on financial reviews, making sure their spend in each market is below the stated fixed cost. The GMT members are updating the Island Chapter teams on their in-market conditions accordingly.

REPORT OF THE CEO June 24, 2021 Page 17

V. TOURISM RESEARCH

The Tourism Research Division (TRD) issued the April 2021 monthly visitor statistics on May 27, 2021, including monthly arrivals by country, category expenditures for major markets, and monthly visitor characteristics for each major market area.

TRD posted Seat Outlook data tables for June through August 2021 to the Infrastructure Research Section of the HTA website. This report also includes flight information. Updates to air seat schedules were also published during the month.

State, market, and island fact sheets were updated with the April 2021 data and were published on the Monthly Visitor Statistics page of the HTA website.

TRD issued the April 2021 Hawai‘i Hotel Performance Report on May 20, 2021. The report and related April 2021 data tables were posted to the Infrastructure Research section of the HTA website. The Hawai‘i Hotel Performance Report is produced using hotel survey data compiled by STR, Inc., the largest survey of its kind in Hawai‘i.

TRD issued the April 2021 Hawai‘i Vacation Rental Performance Report on May 26, 2021. The report and related April 2021 data tables were posted to the Infrastructure Research section of the HTA website. This report utilizes data compiled by Transparent Intelligence, Inc.

TRD continued to publish monthly HTA Symphony Dashboards, which were presented at the April HTA Board Meeting. The Symphony Dashboards incorporates HTA’s visitors statistics, Tourism Economic’s tourism and economic data, UberMedia’s geolocation data, and lodging data from STR (hotel), Transparent, Inc (vacation rental), and HTA’s Quarterly Timeshare Survey. These reports are posted on the Monthly Visitor Statistics page of the HTA website.

TRD published the May 2021 YouGov Coronavirus Travel Sentiment report prepared by HVCB. This report focuses on the impact of COVID-19 on U.S. Avid Travelers and provide travel planning trends, attitudes, and demographics. TRD continued publishing the weekly Hawai‘i YouGov Destination Brand Index for U.S., Japan, and Canada and the weekly Responsible Traveler Segment for the U.S. The report currently features the U.S. market and presents trends on a by island basis. Other markets will be added as data becomes available. These reports are posted on the Other Research Section of the HTA website. These reports utilize data from YouGov’s Brand Index.

TRD continued publishing weekly Travel Agency Booking Trend reports which features forward-looking data for U.S., Japan, Canada, and Australia from Global Agency Pro. These reports are posted on the Other Research Section of the HTA website. REPORT OF THE CEO June 24, 2021 Page 18

TRD is assisting with the state’s mandatory 10-day quarantine including attending HI-EMA operational calls, posting of daily transpacific passenger arrival data derived from data provided through the Office of Enterprise Technology Service’s Safe Travels Program, and supporting state and county law enforcement and prosecutors. HTA also supports the Safe Travels Program by providing air service schedules.

TRD continued to work with the State Attorney General’s office to analyze visitor data related to the impacts of the national travel ban on inbound travel from seven affected countries.

TRD continues to reply to requests for information from HTA’s Global Marketing Team, industry, media, and the general public. Data requests completed include: • Additional detailed visitor statistic data for UHERO and DBEDT/READ for their databases, and the monthly data requests • Research inquiries routed through DBEDT

REPORT OF THE CEO June 24, 2021 Page 19

VI. ADMINISTRATIVE

Contracts List: Pursuant to Hawai‘i Revised Statutes §201B-7 (9), please find the following contracts executed during the month of May 2021:

May 2021 Contract Contractor Description Contract Total Contract Start Date End Date No. Amount Value 17028 S12 a.link LLC Japan MMA $251,680.00 $38,467,000.79 6/3/2021 12/31/2021 Marketing Management Services 20191 S2 University of Hawai‘i $50,920.00 $144,788.00 6/8/2021 6/30/2022 Hawai‘i AgTourism Initiative 21023 Lanai Culture Lāna‘i Guide $22,500.00 $22,500.00 6/7/2021 3/31/2022 & Heritage App Center DBA Enhancements Lāna‘i - HTA DMAP Culture & 2021 Heritage Center 20196 S3 Anthology Hawai‘i's $- $131,937.00 5/18/2021 8/30/2021 Marketing Visitor Industry Group Workforce Needs Assessment 17232 S7 International Festivals & $- $134,050.00 5/25/2021 5/31/2022 Festivals & Events CFEE Events Certification Association Workshops dba IFEA 19179 S2 UberMedia, Visitor and $- $1,008,750.00 5/25/2021 3/31/2024 Inc. Resident Visitation Tracking 2019- 2021 19175 S3 Transparent Vacation $- $310,000.00 5/28/2021 3/31/2023 Intelligence, Rental Inc. dba Performance Transparent Tracking 2019- 2022 REPORT OF THE CEO June 24, 2021 Page 20

18135 S5 ClimbHI LEI Program $(24,765.00) $229,235.00 5/25/2021 12/20/2022 (Lead, Expose, Inspire) Contract Type: • Sole Source † Procurement Exemption REPORT OF THE CEO June 24, 2021 Page 21

APPENDICES Monthly Leisure Marketing Report

May 2021 Hawai‘i Visitors & Convention Bureau (USA) 2021 Monthly Leisure Marketing Report – May

Market Intelligence/Market Conditions

Economy • U.S. economic indicators were once again positive for the month of May, with payroll employment increasing by a strong 559,000 jobs. The Unemployment Rate for May fell to 5.8 percent as hiring picked up and some states announced they will roll back federal unemployment benefits. As the U.S. economy adjusts to the post-pandemic world, performance in some areas will likely exceed expectations, while other areas may fall short. Real GDP growth will rise to +8.6 percent (annualized rate) in Q2 2021 and +6.4 percent (year-over-year) in 2021. Following solid economic growth in Q1 2021, further acceleration is anticipated in Q2 and Q3 2021. The primary driver of this rapid expansion will be a surge in consumer spending as the economy fully reopens. High and increasing vaccination rates and low new COVID-19 case numbers indicate that the reopening process may be complete for much of the country by the end of the summer, according to Robert Dye, Chief Economist, Comerica. o The Conference Board Consumer Confidence Index held steady in May following a gain in April. The Index now stands at 117.2 (1985=100), down marginally from 117.5 in April. o The Present Situation Index based on consumers’ assessment of current business and labor market conditions increased from 131.9 to 144.3. o The Expectations Index based on consumers’ short-term outlook for income, business and labor market conditions fell to 99.1 in May, down from 107.9 last month. • “After rebounding sharply in recent months, U.S. consumer confidence was essentially unchanged in May,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers’ assessment of present-day conditions improved, suggesting economic growth remains robust in Q2. However, consumers’ short-term optimism retreated, prompted by expectations of decelerating growth and softening labor market conditions in the months ahead. Consumers were also less upbeat this month about their income prospects—a reflection, perhaps, of both rising inflation expectations and a waning of further government support until expanded Child Tax Credit payments begin reaching parents in July. Overall, consumers remain optimistic, and confidence should remain resilient in the short term, as vaccination rates climb, COVID-19 cases decline further, and the economy fully reopens.”

Outbound Travel Market • Wholesale bookings continue to be very strong not only for Hawai‘i, but also for Mexico and some Caribbean destinations. European and cruise bookings are also gaining traction. Two top wholesalers had their best May in history with record sales. Bookings are stronger for the fall than Hawai‘i typically sees and especially strong into the December holidays and New Years.

Competitive Environment • Greece, Germany and five other European Union nations introduced a vaccination certificate system for travelers expected to rollout July 1. Greece has been pressing for the certificate that uses a QR code with advanced security features. The certificates are being issued to people who are fully vaccinated as well as those have already contracted the virus and developed antibodies and others who have had a PCR test within the last 72 hours. The EU Commission believes that people who are vaccinated should no longer have to be tested or put into quarantine regardless of

Hawai‘i Visitors & Convention Bureau (USA) 1 where they are travelling to or from, starting 14 days after receiving their second shot. Israel will reopen the country in May to some vaccinated foreign tourists more than a year after closing its borders to most international visitors due to the coronavirus pandemic. Inbound tourism to Israel will resume May 23, initially for six countries: Cyprus, Greece, the U.K., Spain, Austria and Germany. The pilot program’s phase 1 will begin with groups as they will be easier to monitor. Individual travelers are expected to be allowed in at a later stage. "After opening the economy, it is time to allow tourism in a careful and calculated manner,” Health Minister Yuli Edelstein said in a joint statement with the Tourism Ministry. • Denmark Reopens to Fully Vaccinated. Travelers will no longer be required to provide a negative COVID-19 test or isolate upon arrival. Unvaccinated children traveling with vaccinated people, as well as pregnant or breastfeeding women, will be required to present a negative PCR test taken no more than four days before arrival. • Tahiti. With the recent reopening of French Polynesia to vaccinated Americans, the islands of Tahiti are offering discounted stays and family programs. Additionally, the "Working Without Borders" program connects small groups of families for one- to four-week stays starting July 31-Aug. 7. Parents can work remotely in next-gen co-working spaces alongside other professionals, and the kids can join experiences including learning to surf, paddle boarding with sea turtles and rowing traditional Polynesian outrigger canoes. The trip will include more than just pleasure; there will also be purpose. For several hours, families will have the chance to join together with others, as a team, to help restore coral reefs or save an endangered species.

Consumer Trends • According to IDEA Communications: o The Compressionalists. This consumer type is one starved of time and favors convenience and ease of purchase over anything else. Businesses must respond accordingly. How do companies prepare for a high-pressure, low-time group that craves ease of purchase rather than price discounts? In short, declutter the digital experience, use AI/ML to streamline the shopper journey and take a less-is-more approach to product offering. o Deep Kindness. Recent years have seen a boom in kindness. There are corporate kindness classes, Random Acts of Kindness weeks and shirts with kindness slogans abound on the street. Deep kindness relies on consistent action and challenging our own assumptions. This consumer type places a premium on kindness, values and social issues. As their numbers grow, so will their economic impact – and businesses must take heed. Brands that admit their faults or past mistakes will resonate with Kindness Keepers. A 2018 study by Accenture found that 48 percent of U.S. consumers who are disappointed by a brand’s words or actions on a social issue complain about it. People are more forgiving of companies when an apology and transparent recovery plan is provided. Remember, not addressing the problem is no longer a viable solution. o Emboldened. The world is experiencing a wave of optimism that will result in social and political change. Rising youth populations in these developing regions are responsible for this regional dichotomy as Western populations continue to age. o Market Makers. This consumer type values equitable local innovation and representation. If they cannot find an opportunity, they will create it. Market-creating innovations do exactly what the term implies: they create new markets. For frontier markets, this means serving people for whom either no products or services existed, or the access was limited due to price. There has been a decline in market-creating innovations. Fearful of economic instability, companies are opting for efficiency innovations – doing more with less resources. With efficiency innovations, companies can become more profitable and free up cash flow, but they often sell to overcrowded markets. This has been less of a problem in the developing world where innovation is less hindered.

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Media Trends • According to Canava Media: o Instagram stickers for engagement. For a while now, stickers -- like location, mentions and hashtags -- have been popular ways to increase a story’s reach. However, there is also a whole suite of new stickers that have been introduced over the last year, including Questions and Polls which are both excellent tools for encouraging interaction from an audience. Another newer sticker is the ‘DM me’ tag, which opens up a direct conversation with the account when clicked. o Text-focused Instagram posts. Engagement should be front of mind when posting on the grid. That means getting creative with text-focused layouts that encourage comments, shares and saves. Last year, the Twitter-inspired layout took over the Instagram feed, pairing the ‘tweet’ format with a colored or pattern background. In 2020, there was a slightly different take on this—the Google search graphic. o Lives — everywhere! Instagram stories exploded during COVID-10 -- it seemed like every person and their dog was going ‘live!’ In April, an Instagram spokesperson revealed that the app had seen a +70 percent increase in live streaming over the previous month. This was likely boosted by the platform introducing the ability to watch lives on desktop as well as just on smartphones. However, it is not just Instagram users that have been going crazy over live streaming. Many brands have been making use of this feature on Facebook, on pages as well as inside groups. Even LinkedIn has hopped on the live bandwagon! The career networking app rolled out their ‘LinkedIn Live’ feature by application only last year—and say their broadcasts generate 23 times more comments and six times more reactions per post than native video.

Airlift • HTA Airline Seat Capacity Outlook for June-August 2021 was released on June 6. The forecast for domestic scheduled nonstop air seats to Hawai‘i during this period will increase by +702.1 percent compared to the same time period in 2020 (April 2020 was the first full month of the Hawai‘i 14-day quarantine and the immediate reduction of flights is reflected in the high percent change). This projection is based on flights appearing in Diio Mi. Due to the COVID-19 outbreak, the constant fluidity of seats and flights will continue as the COVID-19 pandemic evolves. An overall increase of flights is expected from all major market areas: U.S. West (+649.7%) and U.S. East (+1,394.3%). The situation is being monitored daily and the forecast adjusted accordingly.

Market Intelligence/Market Conditions Impact on Hawai‘i Travel • Hawai‘i’s mandatory 10-day quarantine for arriving passengers remained in effect. Governor David Ige issued the 20th COVID-19 emergency proclamation in which he outlined that starting May 11, individuals fully vaccinated in the State of Hawai‘i may travel inter-county without pre-travel testing/quarantine starting the 15th day after the completion of their vaccination. Travelers who arrive in Kauaʻi, Maui and Hawaiʻi counties before they are fully vaccinated or before the 15th day after the completion of their vaccination, will be placed into mandatory quarantine for the full 10 days, unless they meet the criteria for other exceptions (pre-travel testing and CISA). The City and County of Honolulu does not have an interisland travel quarantine order in place. Vaccinated individuals traveling inter-county will need to: o Provide a CDC COVID-19 Vaccination Record Card with name, birthdate, type of vaccine, date(s) vaccine was administered and lot number(s) for each vaccine dose. o Create an online account and register with the State of Hawai‘i Safe Travels web program. o Affirm that they are fully vaccinated, and that the uploaded CDC COVID-19 Vaccination Record Card is accurate and authentic.

Hawai‘i Visitors & Convention Bureau (USA) 3 o Upload a PDF file or digital image of a properly filled CDC Vaccination Record Card to the Safe Travels Hawai‘i web program. o Bring a digital image as well as the original CDC Vaccination Record Card in case asked.

• U.S. West o Starting June 15, all restrictions in California except those for conventions of more than 5,000 attendees are scheduled to lift. The state has issued a travel advisory that recommends caution and suggests self-quarantines for unvaccinated visitors from out of state and Californians returning to the state, but those steps are not mandatory. Out-of-state arrivals to Oregon, including returning Oregon residents, are still advised to practice self-quarantine for 14 days after arrival, with the exception of asymptomatic travelers who have received a complete dosage of the COVID-19 vaccine and it has been 14 days since their final dose. Governor Jay Inslee has maintained Washington State’s travel advisory proclamation emergency to align with compliance with CDC guidance. As such, travelers to Washington who are fully vaccinated with an FDA-authorized vaccine or a vaccine authorized for emergency use by the World Health Organization do not need to get tested before or after travel unless their destination requires it, and fully vaccinated travelers do not need to self-quarantine. Unvaccinated travelers are recommended to get tested before and after traveling domestically. • U.S. East o Asymptomatic domestic travelers entering New York State are no longer required to test or quarantine as of April 10. There is generally no quarantine, work furlough or testing requirements for asymptomatic domestic travelers, but unvaccinated domestic travelers who have not recovered from COVID-19 in the past three months are recommended to get tested three to five days after arrival in New York and consider non-mandated self-quarantine (for seven days if tested within three to five days, otherwise for ten days).

Leisure Activity Update

Consumer

• On-line

Digital Campaign May – Estimated Impressions*

PARTNERS Impressions AdTheorent 2,893,069 Buzzfeed 1,286,763 Complex 1,169,408 Ogury 312,500 Programmatic 3,498,107 Search 100,000 Tremor 1,674,547 Facebook 3,293,376 Instagram 314,330 YouTube 2,003,131 Pinterest 1,438,709 Total 17,983,940

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o *Note for digital impressions: Beginning in 2021, boosted posts for island chapters were no longer being conducted. As a result, the need to report separately was no longer needed and the columns were removed from impression reports.

Digital Campaign March – Estimated Impressions REVISED**

PARTNERS Impressions

Programmatic PAUSED Search (March) 100,000 Facebook 282,283 Instagram 15,414 YouTube 0 Pinterest 0 Total 397,697

Digital Campaign April – Estimated Impressions**

PARTNERS Impressions

Programmatic PAUSED Search (April) 100,000 Facebook 157,311 Instagram 16,497 YouTube 0 Pinterest 0 Total 273,808

o **March Estimates revised to include Search. April Estimates had not been previously reported.

• Mālama Hawai‘i Brand Campaign o As the people of Hawai‘i are welcoming mindful travelers back with aloha, they are also extending an open invitation to mālama (care for) Hawaiʻi as part of visitors’ journey through the islands. o The Mālama Hawai‘i brand campaign launched mid-May, backed by an integrated marketing plan that includes public relations, paid digital and social media, travel trade training and education, and a coordinated promotion with the Hawai‘i travel industry to entice travelers with a trip that gives back – to Hawai‘i and the visitors. o Proactive earned media pitching efforts are underway, communicating the Mālama Hawai‘i message to mindful travelers with the inclusion of volunteer opportunities for all visiting content developers. Travel trade efforts are also actively educating travel sellers across the country on the benefits their customers will reap by experiencing a deeper connection with Hawai‘i. o Paid digital and social media will share a series of new videos by four Hawai‘i ambassadors invested in the regenerative areas of aquaculture restoration, sustainable farming, reforestation,

Hawai‘i Visitors & Convention Bureau (USA) 5 and wildlife preservation. The campaign call-to-action directs consumers to gohawaii.com/malama, where potential visitors can explore a multitude of promotional offers from Hawai‘i industry partners who have collaborated with volunteer organizations statewide to give travelers an opportunity to stay an extra day - at no charge - if they participate in a voluntourism activity. o Mālama Hawai‘i shares a vision of regenerative tourism that provides visitors with an enriching experience and has them going home knowing that when they travel mindfully and mālama the islands through unique volunteer opportunities – they are preserving, protecting and perpetuating Hawai‘i for future generations of residents and visitors alike. o Consumer Paid Media: − A national flight of paid digital media launched May 17 to reach the Hawai‘i target audience and to launch the new leisure brand campaign - Mālama Hawai‘i – with four (4) new videos distributed in various lengths on vetted paid digital and paid social media.

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− OTT/CTV/Advanced Television streaming media partners include Amazon, Roku, Hulu to distribute Mālama videos in 30-second length versions. − Video Distribution media partners include AdTheorent, BuzzFeed, Complex, Tremor, Ogury, omd programmatic to distribute Mālama videos in 15-second and 30-second length versions (optimized for video completion metrics). − On May 17, paid social launched on Instagram, Facebook, YouTube and Pinterest. Initial performance is strong across all platforms in addition to overwhelmingly positive sentiment.

Hawai‘i Visitors & Convention Bureau (USA) 7

Travel Trade

• Paid Trade Media o The Travel Trade campaign launched in mid-May with a flight of digital media that shares the Mālama Hawai‘i brand messaging with travel advisors, directs them to get the latest updates and learn more about the current destination entry requirements, and invites them to become certified Hawai‘i Destination Specialists. Paid endemic media partners include Northstar and TravAlliance and paid social media partners Facebook and Instagram. o Total estimated digital gross impressions - May: 268,000 − Affiliate Program (Northstar), National Dedicated Email, sent to active Travel Weekly and TravelAge West users − Affiliate Program (Northstar), New Net Participants Dedicated Email, sent to active Travel Weekly and TravelAge West users that are not yet in HVCB HDS database − Affiliate Program (Northstar), Travel Weekly Hawai‘i Newsletter, sent to subscribers that sell/have an interest in Hawai‘i − Affiliate Program (Northstar), Travel Weekly Luxury Newsletter, sent to subscribers that sell/have an interest in luxury travel − Affiliate Program (TravAlliance), Integration on Travel Agent Academy homepage marquee scroll, 2,000 impressions per month − Affiliate Program (TravAlliance), Travel Agent Academy Monthly Newsletter Listing sent to agents − Affiliate Program (TravAlliance), Inclusion in TAA Round Up Print Ad in AGENTatHOME print and digital circulation

• Cooperative Marketing Program o A statewide cooperative marketing program launched May 24 and will run for the next two months to support the industry in the destination’s reopening efforts. The program fielded good industry support. In addition to seven large, anchor partners, 31 additional partners are enrolled statewide to maximize and leverage the collective promotional effort undertaken. Participating offers are featured on the destination co-op landing page. The program is backed by a flight of tactical, conversion paid media, informed by HVCB first party data, to drive ideal Hawai‘i target consumers to the destination co-op landing page, where they’re exposed to Mālama Hawai‘i brand messaging and able to link off to the partners’ booking offers.

Public Relations

• HVCB o HVCB and Island Chapter PR teams are working with Condé Nast Traveler and Matador on native content including videos and online articles relating to Mālama Hawai‘i. To help guide them in the right direction, the teams provided a list of initial recommendations to consider. For Condé Nast Traveler, recommendations included experiences and ambassadors relating to culture, food, soft adventure and voluntourism. For Matador, recommendations included experiences and ambassadors relating to mālama ‘āina and mālama kai. They will be traveling to Kaua‘i, island of Hawai‘i and O‘ahu around June 21-30 to create the content. o HVCB and Island Chapter PR teams are coordinating a two-week Hawai‘i Virtual Media Blitz from June 14-18 and June 21-25. Efforts include partner and ambassador outreach, targeted

Hawai‘i Visitors & Convention Bureau (USA) 8 media invite list curation, the creation of a landing page through which attendees can register for appointments and personalized media outreach. o HVCB hosted journalist Chaney Kwak on a visit to Maui (Apr. 30-May 9) for a story in Hemisphere’s July issue. He experienced stays at The Plantation Inn, Montage Kapalua Bay, Andaz Maui; experienced iconic Hawai‘i cuisine through chef tables; relaxation through spa experiences and adventure by mode of kayaking. As a way to dive deeper into mindful travel and understand culture, he spent time with Silla Kaina, Montage Kapalua Bay’s cultural ambassador, and participated in the Mālama Hawai‘i experience with Lāhainā Restoration Foundation and Leeward Haleakalā Watershed Restoration Partnership. HVCB supported his visit with accommodations, ground transportation and activities. o The HVCB PR team worked closely with Good Morning America (GMA) on its live broadcast segment on May 14 and taped segments filmed on Maui and Oʻahu. Segment concepts included hula, lei making and performances by Jack Johnson and Paula Fuga. In addition to the iconic sun, sand and surf visuals and activities, they also incorporated destination and Mālama Hawaiʻi messaging as well as utilized footage from the Mālama Hawaiʻi campaign’s Aquaculture video featuring Noelani Lee.

o Media coverage highlights: - “Westin Maui Resort & Spa Raises The Luxury Meter On Ka’anapali Beach” – Forbes – Kim Westerman – Apr. 30 - “Best Hawaiian Islands for Different Kinds of Travelers” – AFAR – Amanda Castelman, Aislyn Greene – May 3 - “8 Once-in-a-Lifetime Backpacking Trips in the U.S. “ – Outside Magazine – Megan Michelson – May 4 - “The Outrigger experience in Oahu, Hawaii: 5 reasons to stay at the Waikiki Beachcomber” – The Points Guy – Clint Henderson – May 10 - "Hawaii welcomes back tourists, but they still need to pass COVID-19 tests” – The Mercury News – David Dickstein – May 11 - “Beyond the Front Desk: The Storied Past of the Kahala Resort & Spa in Honolulu” – The Travel Mom – Emily Kaufman – May 11 - “‘Good Morning America’ Wants to Greet The Nation as Pandemic Lifts” – Variety – Brian Steinberg – May 12

Hawai‘i Visitors & Convention Bureau (USA) 9 - “5 Wellness Destinations That Aren't Actually Wellness Retreats” – Marie Claire – Annie Daly – May 13 - “‘GMA’ visits Hawaii as state reopens post-pandemic” – GoodMorningAmerica.com – May 14 - “Hula competitions return in Hawaii as state reopens post-pandemic” – GoodMorningAmerica.com – May 14 - “Jack Johnson and Paula Fuga perform ‘If Ever’” – GoodMorningAmerica.com – May 14

• KVB o Kaua‘i was featured in: - "8 Once-in-a-Lifetime Backpacking Trips in the U.S." – Outside (uvpm: 1,000,600) – Megan Michelson – May 4 - "Kauai Real Estate Is So Hot Right Now, Buyers Are Snapping Up Homes Sight Unseen" – The Wall Street Journal (uvpm: 83,500,000) – J.S. Marcus – May 6 - "Why the Time is Now To Visit Hawaii” – Links Magazine (uvpm: 22,272) – Erik Matuszewski – May 27. Coverage is a result of reviewing a virtual golf FAM that was held on Mar. 17. o Distributed KVB’s “What’s Blooming on the Garden Island” news release to national travel media highlighting the latest happenings, special deals and events on Kaua‘i. o Drafted and distributed in coordination with True Golf Solutions “Kauai anticipating busy travel season – urging all travelers to be prepared with pre-travel testing program” news release to

Hawai‘i Visitors & Convention Bureau (USA) 10 national golfers, golf media and golf industry insiders on May 20. As a result, there was coverage in the following outlets: - Golf Wire (circ: 130,000) – May 23 - Morning Read (circ: 310,000) – May 23 o Corresponded with national travel writers for individual media visits on behalf of HVCB / KVB to highlight mindful travel, Mālama Hawai‘i, history and culture, conservation and outdoor adventure on Kaua‘i. o Distributed early priority invitations to select national media for HVCB’s virtual media blitz, including information about the Island Chapters’ meeting dates and times, and a link to reserve a preferred time slot. o Confirmed participants for an on-island golf media FAM, June 20-24. - John Ledesma – Managing Editor, GOLF Magazine - Don Jozwiak – Editor, Carolinas Golf Magazine and PGA Magazine - Jason Deegan – Writer, GolfAdvisor/GolfPass - Brice Butler – Golf social influencer (and former NFL wide receiver) o Liaised with 45 media in May: - Ramsey Qubein, Forbes - Michele Bigley, San Francisco Chronicle - Michael Goldstein, Forbes.com - Kylie Ruffino, Budget Travel - Sunny Fitzgerald, Travel + Leisure - Melanie Haiken, Marin Magazine - Megan Wiskus-Lim, Style Magazine - Gregory DelliCarpini, Social Life Magazine - Katie Parker-Magyar, TripCast360 - Carolyn Owners, Marriott Bonvoy - Jeff Marcus, Wall Street Journal - Malorie Mackey, VIVA GLAM Magazine - Sarah Sekula, Outside - Shaun Melady, Freelance Writer - Kendall Kostelic, Treasure Box Tours - Callie Foster, Blogger - Wade Holland, Influencer - Lindsay Myers, Influencer - Ashley Grauer, Influencer - John Ledesma, GOLF Magazine - Don Jozwiak, Carolinas Golf Magazine and PGA Magazine - Jason Deegan, GolfAdvisor/GolfPass - Joe Passov, Fore Magazine (Southern California) - Travis Hill, Golfers Journal - Hannah Gregg, Social influencer - Brice Butler, Golf social influencer - Barry Cronin, Chicago Golf Magazine - Jeff Neuman, The Met Golfer - John Marshall, Associated Press - Erik Matuszewski, Forbes and Links Magazine - Jason Lusk, Golfweek - Garrett Yrigoyen, TV personality and social influencer - Patrick Koenig, Social influencer and golf photographer - Matt Ginella, The Fire Pit Collective - Sam Bozoian, Social influencer and Foreplay Pod

Hawai‘i Visitors & Convention Bureau (USA) 11 - Tom Mackin, Freelance writer - David Weiss, Freelance writer - Andrew Penner, Freelance writer - Todd Kelly, Golfweek - Larry Olmsted, NY Times and Forbes - Al Lunsford, Links Magazine - Tom Coyne, Golfers Journal - Brodie Smith, Social influencer - Kelsey Lowrance, Social influencer - Mike Dojc, Forbes

• OVB o O‘ahu was featured in: - AAA Traveler Worldwise (circ: 460,000). Coverage resulted from an individual media visit from Marla Cimini in March 2020. Her article, “Aloha, Families” features Polynesian Cultural Center, Bishop Museum, Diamond Head State Monument and more. - OC Register (circ: 84,417 uvpm: 1,037,780). Coverage resulted from David Dickstein’s requested media assistance in May. His article, “Travel: Hawaii welcomes back tourists, but they still need to pass COVID-19 tests” features John De Fries, Turtle Bay Resort, Outrigger Reef, ESPACIO and more. - UPROXX (uvpm: 10,172,463). Coverage resulted from the “Mālama O‘ahu” news release OVB distributed in May. His article, “Hawaii is Offering Serious Travel Discounts If You Volunteer While Visiting” features the Mālama Hawai‘i campaign. - CNN (uvpm: 47,677,917). Coverage resulted from Kristen Roger’s requested media assistance in May. Her article, “Unlocking the World: Summer travel outlook ‘We’re seeing the light at the end of the tunnel” features executive director Noelani Schilling-Wheeler and Gov. David Ige. o Liaised with 16 media in May: - Sunny Fitzgerald, The Insatiable Traveler - Aislyn Greene, AFAR - Laurie Werner, Forbes - Sarah Sekula, Freelance - Jessica Ricks, Hapa Time - Elycia Rubin, Freelance - Michelle Winner, Travel Pulse - Angela Saurine, Out & About with Kids - Melissa Aguilar, Houston Chronicle - John Wogan, Travel + Leisure - Kylie Ruffino, Budget Travel - Leila Najafi, Thrillist, USA Today - Michele Bigley, SFGate - Carolyn Richardson, TripSavvy, LA Parent - Deborah Perry Piscione, ForbesWomen - David Dickstein, OC Register

• MVCB o Individual Media Visits: - Chaney Kwak, freelance: Hemispheres Magazine (circ: 11.5Mil) and Food & Wine Magazine (uvpm 7.2Mil). Maui visit Apr. 30-May 9. - Amber Love Bond, freelance: American Way (circ 500K) Forbes.com (uvpm 183Mil). Maui visit May 12-15.

Hawai‘i Visitors & Convention Bureau (USA) 12 o Liaised with and/or provided information or image(s) assistance to the following media: - KiraWest, @ bykwest/Social media influencer. Worked with United Airlines to provide assistance on itinerary for Maui visit May 26-June 2. - Ben Davidson, freelance: AAA Encompass Magazine (circ: 400K) and Coastal Living (Circ: 4Mil). Set up itinerary for Maui and Lāna‘i trip Aug. 8-17. - Laura Begley Bloom, freelance: CNBC.com (uvpm 212Mil). Provided information for article “Best Summer Vacations to Get Back to Nature” featuring Maui with a spotlight on Lahaina. Also provided Maui and Hawai‘i COVID travel protocol updates. - Debra Bokur, Editor: Global Traveler Magazine (circ: 550K). Provided information on Lāna‘i and images for upcoming article. - Mark Mantegna, Photo Editor: Hemispheres Magazine (circ:11.5Mil). Provided images for upcoming Maui feature. - Mike Reifeiss and Marko Nikolic, @Golfholics/Social Media Influencers. Set up itinerary for Maui visit July 25-Aug. 1.

• IHVB o The island of Hawaiʻi was featured in: − AFAR, (uvpm: 643,317), “Best Hawaiian Islands for Different Kinds of Travelers,” May 3. Coverage resulted from providing recommendations on island ambassadors tied to Hawaiian culture and hotel updates including those doing good work either in the community and/or environmentally in April. − Champagne Living (uvpm: 2,300), “Holualoa Inn Estate: Calling All Sanctuary Seekers to Come to the Island of Hawaiʻi,” May 10. Coverage resulted from assisting Kathy Chin Leong with a visit to the island of Hawaiʻi in January. o Liaised with 12 media in May: - Cheryl Tsutsumi, freelance, AAA Explorer, Honolulu Star-Advertiser - Cynthia Barnes, freelance, National Geographic, Newsweek, Departures, The Denver Post - Katie Parker-Magyar, freelance - Esther Lee, The Knot - Will McGough, freelance - Al Bonowitz, AAA - Debra Smith, freelance - Carmen Gonzalez, NBC News - Alex Schechter, freelance, Travel + Leisure - Vince Mancini, UPROXX - Michael Gordon Bennet, TripCast360 Podcast o Drafted/distributed food culture, agritourism and farmers’ markets themed What’s Sizzlin’, May 3.

Sales Activities

Sales Calls, Trade Shows, Training Events

Airline Wholesaler/TA/TO/OTA/Other Total HVCB 88 88 KVB 3 3 OVB 1 6 7 MVCB 0 IHVB 5 5

Hawai‘i Visitors & Convention Bureau (USA) 13

Summary of Key Sales Activities

• HVCB o For the month of May, travel trade hosted 33 educational webinars/virtual training sessions for a total of 4,416 participants and was involved in 15 industry partner meetings with a total of 36 participants; there were two trade shows and 38 “one-on-one” virtual travel advisor appointments in the month. HVCB and the Island Chapters are working closely with industry partners to communicate the Safe Travels Program, pre-testing protocols, trusted travel partners list and share all the important links via the travel agent website, linking to gohawaii.com and the DOH accordingly. o The team fielded all inquiries received from travel advisors across the United States via the agents.gohawaii.com site who required assistance to plan their clients’ trips and navigate the Safe Travels program. o Classic Vacations conducted a Hawai‘i Virtual Product Showcase on May 4 drawing 700 travel advisors. HVCB participated as a panelist along with United Airlines and Marriott Hotels and Resorts. Participating Hawai‘i suppliers included Mauna Lani, an Auberge Resort, Hyatt Regency Maui Resort and Spa, Honua Kai Resort and Spa, Andaz Maui at Wailea Resort, The Westin Maui Resort and Spa, The Ritz Carlton Kapalua, The Fairmont Kea Lani Maui & Fairmont Orchid Hawai‘i, Prince Resorts Hawai‘i, Turtle Bay Resort & Spa and the Wailea Beach Resort Marriott Maui o Avoya Travel Network held their virtual Land Forum from May 4-7 drawing 350 travel advisors. As a sponsor, HVCB conducted a general session presentation to the entire network, conducted 30 one-on-one appointments and participated in speed networking and other networking opportunities. o HVCB was a sponsor for Signature Travel Network’s Regionals Reimagined: North America (Deluxe and Luxury) event on May 5. HVCB delivered a brief opening presentation and then participated in eight Zoom breakout sessions with a total of 142 travel advisors. Classic Vacations, Delta Vacations and Journese also participated in the event. o HVCB partnered with Apple Leisure Group Vacations to present a Hawai‘i webinar to 63 advisors from Travelmation on May 11. The webinar covered details on the Safe Travels program, Mālama Hawai‘i and island updates. o HVCB and the Island Chapters hosted The Hawaiian Islands Virtual Education Event: Mālama Hawai‘i for travel advisors from May 12-13. The two-day event captured 1,797 unique views on Day 1, including 281 attendees in the Zoom networking room; Day 2 captured 1,247 unique views, with 248 attendees in the Zoom networking room. HVCB and the Island Chapters presented, including live segments with prize giveaways, and featured presentations from a total of 32 Hawai‘i suppliers, including ALG Vacations, Delta Vacations, Pleasant Holidays, Battleship Missouri Memorial, Bishop Museum, Fair Wind Cruises, Hawai‘i Farm Trails, Kualoa Ranch Hawai‘i, Maui Ocean Center, Paradise Helicopters, Twogood Kayaks Hawai‘i, Inc., The Umauma Experience, Castle Resorts & Hotels, Courtyard by Marriott O‘ahu North Shore, Embassy Suites by Hilton O‘ahu Kapolei, Embassy Suites by Hilton Waikīkī Beach Walk, Fairmont Hawai‘i, Grand Wailea, A Waldorf Astoria Resort & Ho‘olei Villas, Hawaiian Hotels & Resorts, Highgate Hawai‘i, Hyatt Resorts in Hawai‘i, Kā‘anapali Beach Hotel, The Kāhala Hotel & Resort, Kōloa Landing Resort at Po‘ipū, Marriott International Hawai‘i, Montage Kapalua Bay, Outrigger Hotels and Resorts, Prince Resorts Hawai‘i, Sheraton Kaua‘i Coconut Beach Resort, Shoreline Hotel Waikīkī, Sightline Hospitality Hawai‘i, The Waikīkī Collection and Sheraton Maui Resort & Spa. The live broadcast was recorded and available for on-demand viewing at travelagentcentral.com, along with a resource center accessible for the next six months. o HVCB conducted a webinar for 50 travel advisors with Smartflyer, a Virtuoso agency, on May 18.

Hawai‘i Visitors & Convention Bureau (USA) 14 o Pleasant Holidays invited HVCB to participate in a webinar for AAA advisors and consumers in Georgia and Tennessee on May 18. The webinar reached 15 advisors and 22 consumers and discussed Safe Travels, Mālama Hawai‘i and island highlights. o HVCB partnered with Classic Vacations and Outrigger Hotels & Resorts for a Hawai‘i webinar on May 19. Twenty-four advisors participated live, and the webinar was recorded for future viewing. HVCB addressed details on the Safe Travels program, Mālama Hawai‘i and island updates in the webinar. o HVCB was an exhibitor and presenter at the AAA Adventurefest virtual event from May 24-27. The event was attended by 1,000 AAA travel advisors. HVCB hosted a virtual booth with resources and conducted daily presentations on Hawai‘i’s travel protocols. o Cruise Planners hosted a Hawai‘i webinar on May 27 for 150 travel advisors. HVCB shared updates on travel protocols, Mālama Hawai‘i and travel advisor resources. o Travel agent website agents.gohawaii.com update: There were 550 online graduates who completed the Hawai‘i Destination Specialist and/or Island Specialist educational courses online, and 667 new registrants signed up for access to online resources. The travel agent database numbers are now up to 88,338 email contacts, which includes 33,735 active U.S. travel advisor profile records.

• IHVB o Travel Leaders Webinar, May 11 (62 attendees). Destination updates, travel protocols. o Cruise Planners Webinar, May 17 (31 attendees). Destination updates, travel protocols. o NorCal Ohana FAM, May 19-22 (6 attendees). Itinerary support, destination updates. o Camelback Odyssey Webinar, May 25 (28 attendees). Destination updates, travel protocols.

• KVB o Provided Kaua‘i updates at the MidWest ‘Ohana Monthly meeting for approximately 13 attendees who were wholesale and hotel representatives, May 20. o Presented Kaua‘i updates and overview during agent-hosted client zoom featuring Kaua‘i for 29 people, May 25.

• MVCB o Participated in a Travel Leaders Webinar on May 18 for 270 agents.

• OVB o Norcal Hawai‘i ‘Ohana: O‘ahu Educational FAM. OVB provided destination training via Zoom on May 19 and provided itinerary support for FAM program on island from May 20-24 (6 advisors). o Travel Leaders webinar, May 4 (60 advisors). Destination updates, travel protocols. o Hawaiian Airlines webinar, May 19 (233 advisors). Destination updates, travel protocols. o Pleasant Holidays webinar, May 26 (47 advisors). O‘ahu 101. o Apple Leisure Group webinar, May 26 (27 advisors). O‘ahu 101.

Hawai‘i Visitors & Convention Bureau (USA) 15 Key Performance Indicators - Leisure Market

Consumer

Digital Campaign April Actual Impressions

PARTNERS Impressions

Search 259,723 Facebook 296,312 Instagram 15,796 YouTube 0 Pinterest 0 Total 571,831

Digital Campaign March Actual Impressions (Previously unreported) PARTNERS Impressions

Search 569,554 Facebook 445,276 Instagram 65,089 YouTube 0 Pinterest 0 Total 1,079,919

Public Relations

• Month-end impressions and publicity values for articles that included Hawai‘i – April results

Impressions and Publicity Values for April

APRIL Impressions Publicity Values

Print 69,011,237 $70,435,454

Online 138,022,475 $17,252,809

Broadcast 276,044,950 $34,505,619

Total 483,078,662 $122,193,882

Countermeasures

Hawai‘i Visitors & Convention Bureau (USA) 16

• The Hawai‘i Visitors and Convention Bureau’s call and email teams continued to field and answer questions about the current status of travel to the islands and details about Safe Travels. Staff continued to ensure information shared with media, travel trade, MCI clients, and various constituencies was the most current about trans-Pacific and inter-county protocols regarding Safe Travels. • HVCB’s 1-800-GoHawaii call center fielded 24,286 calls in May. In addition, HVCB staff and call center agents responded to nearly 22,000 Safe Travels inquiries to [email protected].

Responsible Tourism Update

• Hawaiian Culture o The Mālama Hawai‘i brand campaign launched mid-May, backed by an integrated marketing plan that includes public relations, paid digital and social media, travel trade training and education, and a coordinated promotion with the Hawai‘i travel industry to entice travelers with a trip that gives back – to Hawai‘i and the visitors.

• Natural Resources o In conjunction with the Malama Hawai‘i brand campaign launch, the consumer and travel trade enewsletters announced the program that invites visitors to mālama the islands through unique volunteer opportunities to preserve, protect and perpetuate Hawai‘i for future generations of residents and visitors alike.

• Community o HVCB − With the relaunch of the enewsletter program, a section was dedicated in both the consumer and travel trade enewsletters to remind readers of the current travel requirements into the state and provide a list of resources for them to access to keep up to date and satisfy those requirements. o KVB - In response to the current pandemic, executive director Sue Kanoho continued to work regularly with the Kaua‘i Emergency Management Agency Office in cooperation with the County of Kaua‘i’s Mayor and Mayor’s office, Kaua‘i Police Department and other state and county officials and organizations including discussion on Kaua‘i rejoining the Safe Travels Program and regulations and rules regarding MCI and groups. - KVB continued “Resort Bubble” efforts in coordination with the County as an option for those arriving to Kaua‘i that do not meet Safe Travels requirements but qualify for the resort bubbles. o OVB – Nothing new to report o MVCB − Supported Maui County’s Mālama Maui County Pledge promotion with distribution of a rack card and video in May. o IHVB − Continued to support the County cohort team overseeing Pono Communications action plans/steps for the County of Hawaiʻi’s (COH) Tourism Strategic Plan. − Participated in an initial call with select Destination Management Action Plan (DMAP) stakeholders - HTA and County of Hawai‘i - to begin conversation and determine two initial “hot” spots - Waipiʻo Valley and Papakōlea (green sand beach). Researched Department of Hawaiian Home Lands (DHHL) plan for the Papakōlea area and shared with the group. Second call initiated by HTA included a representative from DHHL. Executive director Ross Birch reached out to Hāmākua County Councilperson Heather Kimball to get her thoughts on HTA/IHVB/COH hosting a meeting with valley residents and next steps.

Hawai‘i Visitors & Convention Bureau (USA) 17

• HTA Events and Programs o Nothing new to report

“Coming Attractions” for Leisure Market

What When Where HVCB Individual Media Visit: Melanie Haiken Jun. 2-8 Kaua‘i (Marin Magazine, The Points Guy) Individual Media Visit: Leila Najafi June 4-11 Maui and O‘ahu (USAToday, Thrillist) Individual Media Visit: Kylie Ruffino (Budget June 7-15 Maui and O‘ahu Travel) Individual Media Visit: Carolyn Richardson June 21-25 O‘ahu (TripSavvy, LA Parent, Los Angeles Times) Virtuoso Webinar June 1 Virtual Cruise Planners Where to Next Consumer June 8 Virtual Webinar Gifted Travel Network Vendor Lounge June 9 Virtual TAT Travel Hawai‘i Night Consumer June 10 Virtual Webinar Virtual Vacation Events Luxury Travel Show June 11 Virtual Midwest ‘Ohana Hui Holomua Webinar June TBA Virtual Series Romance Travel Forum June 14-17 Riviera Maya, Mexico ASTA South Florida Spring Affair June 23-24 Fort Lauderdale, FL Gifted Travel Network Vendor Presentation July 8 Virtual Global Travel Marketplace (GTM) July 8-10 Fort Lauderdale, FL WESTA Owner Meeting July 23-26 Puerto Vallarta, Mexico Cruise360 July 27-Aug. 1 Hollywood, FL KVB Go Golf Kaua‘i Media and Influencers Press June 20-24 Kaua‘i Trip Global Travel Marketplace July 8-10 Ft. Lauderdale, FL OVB Global Travel Marketplace July 8-10 Ft. Lauderdale, FL Mailpound Webinar Aug. 9 Virtual Mailpound Webinar Sept. 1 Virtual IPW Sept. 18-22 Las Vegas, NV MVCB None to report IHVB Consumer Opt-in Email (How You June 23 Web Can Mālama Hawai'i on the Island of Hawai'i)

Hawai‘i Visitors & Convention Bureau (USA) 18 Hawai‘i Tourism Japan 2021 Monthly Leisure Marketing Report – May

Market Intelligence/Market Conditions

Economy • GDP: st o 2021 1 Qtr. GDP: According to Japan Center of Economic Research, Japan’s 1st quarter GDP resulted minus 4.6% from the previous year 1st quarter. (source1) The drop is much greater than 2008 Lehman shock (-3.6%) and reason of the economic decrease affected lower consumption rate is due to the state of emergency in metro Tokyo and Osaka area. (source2)

st o 2021 GDP Forecast: Based on Nikkei data bank “NEEDS” and Japan Cabinet office’s 2021 1 Qtr. GDP report, the 2021 overall GDP growth is forecasted 5.9% and 2.3% for 2022.

• Ministry of Economy, Trade and Industry’s April dynamic statistics of commerce showed 12% increase from the previous year and two months in the row and it showed the retail industry recovery especially Department and Convenience stores.

• Olympic: Despite of more than 80% of Japanese oppose hosting Tokyo Olympics in 2021, which is with just under 10 weeks, International Olympic Committee was adamant that nothing could stop the Tokyo Olympics from going ahead. Japan government will determine how Japan handle over 80,000 entries for Olympic athletes and members after the lift of state of emergency.(source)

COVID−19 • Extension of State of Emergency: Japanese government extended the COVID-19 state of emergency (was set to expire at the end of May) until June 20. Total 10 prefectures were affected and the restriction of business operation as well as control of capacity level on indoor facilities including museums and theaters required with 50% capacity and maximum 500 pax or less during the period. This 3rd state of emergency extension comes with less than two months from Tokyo Olympic. Tokyo, Kyoto, Osaka, Hyogo 4/25 to 6/20 Aichi, Fukuoka 5/12 to 6/20 Hokkaido, Okayama, Hiroshima 5/16 to 6/20 Okinawa 5/23 to 6/20

• Vaccination Progress: Japan’s vaccination rapidly increased and its available 15,000 doses per day for senior citizens (over 65 years old) for Tokyo and Osaka starting 5/25. Japan’s current vaccination rate went up 12% (at least 1 dose) and Japan government expanded the vaccination venues including universities and colleges throughout Japan. The vaccine has become high demand commodity in Japan and the government approved Moderna and AstraZeneca.

U.S. Hawaiʻi Japan 51.5% 60% 12.0% Outbound Travel Market • Due to the COVID-19 state of emergency, Japan general public are restrained travel (postpone GoTo Travel) and entertainment. The stay-home consumptions including online/virtual tours have been increased to satisfy their demand in COVID19. Once the state of emergency lifts, the business track, inbound business and outbound travel recovery will slowly progress, experts said. In

HAWAIʻI TOURISM JAPAN 1

consumer sentiment, Hawaiʻi is number one destination selected as most desired destination after COVID-19 ends. Hawaiʻi’s competitive destinations like Korea and Australia have started recruit Japan market business. Hawaiʻi needs to prepare for tourism recovery with wholesalers and airlines.

• IATA Travel Pass Trial: ANA will trial the International Air Transport Association (IATA) Travel Pass on its flights connecting Tokyo with Honolulu and New York until June 6. The smartphone app shows travelers’ polymerase chain reaction test results, currently a condition of entry for most countries and vaccination status. (source) This trial demonstrated ANA’s commitment to Hawai‘i and New York.

Trail flights - Hawaiʻi Haneda to Honolulu: 5/24, 28,31, 6/4 Honolulu to Haneda: 5/25, 29, 6/1, 5

Competitive Environment Hawaiʻi’s competitive destinations like Australia and Taiwan aggressively approached Japan market via SNS and events in May. Also, Korea and Taiwan funded the tourism recovery by arranging complementary air tickets and reaching JATA to discuss FAM tours. Japan travel industry are asking Hawaiʻi’s recovery plan and support since Hawaiʻi is the top tourism recovery destination for them.

Tourism Recovery Efforts Asia Competitive Travel Recovery Campaign: 20,000 complementary round-trip air ticket Destination promotion

Hosted FAM: Heavily approaching Japan Travel industry and Government to Korea host multiple FAM tours to Korea

Taiwan Festival 2021 in Tokyo: 6/17 to 6/20

Tokyo Tower Taiwan Festival 2021 Summer: Taiwan gourmet themed event Taiwan from 5/22 to 7/11

Global Streets Walk with JTB Twitter campaign collaboration ELLE Gourmet Food & Travel Video Promotion: Australia Tourism

collaborates with "ELLE magazine" creating 3 gourmet videos and will distribute

from 6/4 Australia Themed Charter Outbound Travel: Australia themed charter flights operated

by JAL departing Narita on 6/12

Other Destinations Entry Restriction & Release Thailand Starting from 5/6, all entry from Taiwan required minimum 14 days quarantines From 5/7, required 21 days quarantine (was 14 days) at the specific hotel 5/7 Singapore (source) The government expressed the complete release of entry restrictions possibly Australia expected in mid-2022 (source) Eased the quarantine restriction from 21 days to 14 days for person who Hong Kong already vaccinated and from low-risk countries. Spain accepting tourists from Japan and England from 5/24. No requirement of Spain negative certificate and vaccine proof.

HAWAIʻI TOURISM JAPAN 2

Consumer Trends • Affluent Market Trend During COVID-19: 5 trends/concerns for affluent market are 1) safety and cleanness 2) travel to avoid infection 3) sustainable experience 4) purposeful journey 5) wellness focus journey. (source)

• Remote Work New Trend: According Airbnb market research, Bleasure (Business + Pleasure) travel style will be increased since more workers are freely work in remote environment. Based on Airbnb report, over 28 days stay trip were increased from 14% two years ago to 24%. (source) HTJ will propose new travel style in Hawaiʻi to “New Norm Workers” to increase their length of stay.

• More Vaccine, More Senior Travelers: Based on SNS research, the senior citizens will be more confident outing once vaccines are available for them. The desire for outing and travel (both domestic and international) is increased 83%. (source) This is a great opportunity to reach senior market with Hawaiʻi’s safe destination message via media and travel trade partners.

Digital Marketing Trend • ANA Holding New Virtual Travel Platform Development: ANA announced a new business establishment, ANA NEO, with development of digital platform called “SKY WHALE”, and marketing plan of the new concept of travel. Unlike traditional travel style, SKY WHALE offers digital travel opportunities via smart phone and tablet. The service is expected to launch in 2022. 3 types of services are: o Sky Park: new travel experience by 3D and CG o Sky Mall: e-shopping experience o Sky Village: e-living experience in smart city

This digital platform allows target audience to experience with no time and location limitation. ANA NEO is planning to collaborate with Global EC developers and create partnerships to promote the service. (source)

 New Shopping Experience: Mitsukoshi-Isetan opened new shop, VR Isetan Shinjyuku, which provides the shopping experience in 3D and customer is able to enjoy e-shopping as avatar. The main characteristic of this VR shop allows customer to have interaction with service staff. This type of new e-shopping experience reaches the audience remotely and expands its brand promotion. (source) HTJ will possibly work with major department stores’ Hawaiʻi fair like Hankyu Umeda Osaka Hawaiʻi event for summer and take this opportunity to promote Mālama Hawaiʻi and Hawaiʻi Made products.

 Tourism Crowdfunding Initiative: One of the major Attraction OTA, VELTRA launched travel related service crowdfunding called “Zenes”. This initiative will support local organizations for tourism recovery, test marketing tour product creation and development and more. VELTRA conducts tours through this project and more quality focused tours and tour related events will be provided. (source) HTJ have already discussed with VELTRA to promote Mālama Hawaiʻi related products and collect donations to support local NPOs.

Travel Trends  Due to the current challenging environment, major wholesalers announced extension of stop-sell to end of July and early August. HIS, Hankyu, JALPAK & KNT: until 7/31 JTB: until 8/5 ANA Sales: until 8/31 *Dynamic tours are available in the market.

HAWAIʻI TOURISM JAPAN 3

Media Trends  According to specific service industry dynamic statistics survey by Ministry of Economy, Trade and Industry, advertising in newspaper and internet increased the volume (+0.6%), unlike Magazine/TV/Radio segment (especially Magazine: -31.6%) were down in 2020.

 Based on SNS marketing company Pasture’s “Instagram trend” report by own analytic system “MASAI” which utilized over 200 media Instagram account data, the interest of food related and fashion have been high rank in the category. (source) i.e.: Food/Cooking: Kurashiru over 3.7 million followers, Tastemade Japan 2.06 million followers; Fashion: Vogue Japan 1.32 million.

 In recent years with digital and internet media power, TV prime time (7pm-10pm) viewership per household were down 60%. The experts stated this tendency will continue in 2021. (source)

Airlift • Airlines Operations (as of 5/25) : 3 major airlines (ANA, JAL & Hawaiian) continued operating 7- 8 flights per week.

Flights from Haneda/Narita/Kansai o May: Total 34 flights with 8,428 seats o June: Total 34 flights with 8,368 seats (forecast) o July: Total 37 flights with 9,286 seats (forecast)

Major Airlines Operation/Suspension ANA Operate 2 flights/week from Haneda; other routes suspended until 9/30. HA Operate 3 flights/week from Narita, 1 flight/week from Osaka; other routes suspended until 7/31. JAL Operate 2 flights/week from Haneda; other routes suspended until 9/30. ZIPAIR Will resume 1 flight/week from 7/21 DL Suspended until 8/31 for Haneda & suspended until further notice for Osaka & Nagoya KE Suspended until 7/31 UA Suspended until 6/30 AirAsia Suspended until further notice

Airlines Initiatives  ANA Holdings: ANA announced its 2-flight schedule for A380 “Flying Honu” in August from Narita (520 air seats per flight). This will have positive impact and encourage tourism recovery.

 JAL o Honolulu Marathon (HNL Marathon): JAL is discussing and planning 2021 HNL Marathon. This is a great trigger to increase tourism to Hawaiʻi from Japan market. Travel industry expressed the excitement for tourism recovery.

o Hawaiʻi Themed Event with Prince Hotels: To keep Hawai‘i top of mind, JAL collaborated with Prince Hotels to provide Hawaiʻi themed domestic charter flight and Grand Prince Takanawa hotel stay on 6/26. In the flight, Hawaiian menu is provided and at the hotel, Hawaiian themed dining experience and Hawaiian musician performance are included. (source)

o Additional Flights in Summer: JAL announced adding more flights to the current 2 flights per week from Haneda in the summer.

HAWAIʻI TOURISM JAPAN 4

 Hawaiian Airlines (HA): To enhance customer service, HA started providing pre-testing program reservation service in addition to Safe Travels pre-clearance. Upon air ticket booking, HA representatives provide support to the one stop service, especially for senior citizens.

Market Intelligence/Market Conditions Impact on Hawai‘i Travel • Even through travel conditions remain the same as previous months, travel trade searched ways to increase travel interest and demand for travel. In May, 3 major Hawaiʻi carriers (ANA, JAL and HA) announced their flights for summer in preparation for after Olympic travel demand. With the increased vaccination, the Japanese citizens will be more confident and ready for travel domestically and internationally. In addition, the possible implementation of vaccine passport was discussed among medical experts and government officials in Japan, a positive news for tourism recovery for Japan and outbound destinations including Hawaiʻi.

• HTJ will continue messaging of Hawaiʻi’s as a safety destination and Mālama Hawaiʻi initiatives via public relation, direct consumer efforts, and travel trade education.

Leisure Activity Update

Consumer • HTJ sent an email magazine to 372,480 consumers on 5/21 to announce the 2nd phase of “Wear Aloha, Save Aloha” project, Bishop Museum x POW! WOW! exhibition, Hawaiʻi’s unique culture of “Mele Mei”, a survey campaign and announcement of 4th anniversary of friendship relations between Hokkaido and state of Hawaiʻi, history of surf culture in Hawaiʻi, community support project of Aloha Program, and Merrie Monarch Festival 2021. The 2nd phase of “Wear Aloha, Save Aloha”, Mele Mei, and 4th anniversary of friendship relations between Hokkaido and state of Hawaiʻi had received high percentage of clicks.

• “Wear Aloha, Save Aloha” Campaign: SNS campaign from April 30th - May 14th to increase exposure and awareness of the project and Hawai‘i brand, attracted total 2,145 people who applied. For twitter campaign, total impression was 354,337 with 230 new followers generated. On May 21st , HTJ launched the 2nd phase with Japanese apparel brand, BAYFLOW mainly targeting 30-40s both men and women. For this phase, Hawaiʻi’s two local artists designed with a message of “protect Hawaiʻi’s ocean and ʻāina”. Total 300 aloha shirts made with COTTON USA were sold out in a couple of hours which shows Japan market has high interest and understanding of sustainable concept. HTJ’s YouTube exposure for “Wear Aloha, Save Aloha.” from 5/2-5/14, resulted total impression of 1,267,866 with value of $19,925.60. Since the start of this campagin (4/22), total PR value of $825,900 were generated.

Through this branding campaign in collaboration with Japanese Total reach as of 5/25 famous apparel brands and Hawai‘i local designers, HTJ put a - SNS reach: 668,783 spotlight on Aloha Shirt which has historical connection with - Email magazines: 372,480 Japan and shared Māmala Hawai‘i messages reaching targeted - Website: 465,707 audiences.

HAWAIʻI TOURISM JAPAN 5

• HTJ’s created an original movie “Our Islands” to promote Hawaiʻi’s unique culture and the similarities of culture and value between Japan and Hawaiʻi. this video is being streamed digitally at 75 stores of beauty salons in Japan, generating impression of 120,000 per week.

• Millenial Initiatives • POOLO: HTJ’s millennial initiatives with TABIPPO continued monthly activities with members. In the month of May, 46 members participated and shared their draft plans for a new-normal travel with the concept of “Mālama Hawaiʻi”. Travel influencers gave their feedbacks and discussed plans for the final presentation.

• “Wakamono Kaigi” (Young generation meeting): A PR company “Vector Inc” and one of Japan’s largest human resources companies, “My Navigation”, jointly launched “Wakamono Kaigi” to provide an opportunity for students between age 18 - 29 to share their ideas and thoughts towards products and destinations for six companies including HTJ. Each group of participants will choose one theme from one company and compete by presentations. HTJ’s theme for participants is the idea of how to promote new normal travel to Hawaiʻi with a mindset of “Mālama Hawaiʻi”. The entry for this program started on 5/25, and the competition will begin in July.

Aloha Program • In May, there were 175 new Aloha Program members and 76 members took Hawaiʻi specialists. Year to date (January to May), Aloha Program Hawaiʻi specialist members totaled 26,633 (12,275 advanced, 4,449 intermediate, 9,140 beginners and 769 youth) and it registered total 62,097Aloha Program Members as of May 31st.

• NPO Support: Aloha Program webinar conducted (113 Hawaiʻi specialists participated) on 5/14 and introduced Hawaiʻi’s NPOs who newly registered for Aloha Program’s community support project which are Coral Reef Alliance, ʻImiloa Astronomy Center of Hawaiʻi, and Hawaiʻi Land Trust.

• Public Relation: Aloha Program was introduced at Lighthouse Hawaiʻi (total circulation of 20,000) for local Japanese communities on May 16th.

• Education: HTJ continued streaming bi-weekly live webinars for Hawaiʻi specialists through the Aloha Program. Topics of the webinars in May included Hawaiʻi’s NPOs and Mālama Hawaiʻi website introduction, and Bishop Museum and POW! WOW! exhibition, with total 223 Hawaiʻi specialists attended.

• Information Distribution: HTJ sent an email magazine to 45,033members of Aloha Program on

HAWAIʻI TOURISM JAPAN 6

5/27 which includes the announcement of the upcoming webinars for Aloha Program members, virtual 55th anniversary celebration of ‘Iolani Palace, Merrie Monarch Festival 2021, and “Wear Aloha, Save Aloha.” information and Hawaiʻi specialist exclusive survey campaign.

Public Relations  Media exposures & press releases: During the month of May, there were total of 145 exposures generating 18,904,747,595 impression and $3,939,532.42 AVE. HTJ distributed total of 3 press releases generating 121 exposures, 18,853,970,155 impression, and $485,460 AVE. HTJ will be distributing press release on Kamehameha Day and Merrie Monarch Festival in May.

Date Press Release Topic Exposure Impression AVE 11-May Long-Term Stay and Workation 45 1,684,037,183 $182,280 12-May 3rd Hawaiʻi Tourism Forum 36 15,293,606,309* $139,500 WEAR ALOHA, SAVE ALOHA 2nd Phase 21-May 40 1,876,451,663 $163,680 Launch *LINE NEWS is one of the online media that has high impression count and it featured about `3rdHawaiʻi Tourism Forum.

• Media Calls: 36 media calls (18 prints and online publishers,12 TV, and 6 freelance writers and photographers) and support were made in May. Media were interested in featuring Surfing in Hawaiʻi website, Hawaiʻi’s history and HTJ’s promotions. Most of the TV stations featured that Hawaiʻi was the top destination that consumers wanted to visit post pandemic and current situation in Hawaiʻi, and how environment has changed in Hawaiʻi.

• Media Website: HTJ added contents relating to Made In Island of Hawaiʻi products, farms in Island of Hawaiʻi, Eatery that provides fresh local ingredients, ʻOahu’s art scene, and museums in Hawaiʻi. HTJ will continue to add the information relating to Mālama Hawaiʻi and Aloha + Challenge.

Travel Trade  Travel Trade Education: HTJ conducted 3rd Hawaiʻi Tourism Forum on 5/19. Even though the theme “Edu-Tourism” was more focused on MICE audience, over 230 leisure related agents also participated. Along with HTF, HTJ also continued enhancing the education/information on Travel Trade website. Total 21 columns were created and published including 3 stakeholders from Mālama Hawaiʻi initiatives. (as of end of May, PV: 9,197 / UU 4,001)

• Monthly Mail Magazine: HTJ distributed monthly mail magazine to Travel Trade member of close to 18,000 (open rate 36.2%). In the mail magazine, HTJ included info on Hawaiʻi Tourism Forum, visitor statistics of March 2021, Edu-Tourism introduction and current Hawaiʻi’s COVID-19 situation and vaccination in Hawaiʻi.

HAWAIʻI TOURISM JAPAN 7

• SNS Reach: Through Travel Trade Twitter, total 47 posts were made and earned 65,501 impressions in May. Each post linked to the Travel Trade website and contributed PV and UU increases.

Sales Calls Airline Wholesaler/TA/TO/OTA Other Total 8 23 10 41

• Travel Agency Support: o Travel agencies are planning Hawaiʻi event collaborations with hotels and shops and requested for HTJ’s video footages.

o JTB Smart Hawaiʻi: JTB introduced “JTB Smart Hawaiʻi” product and started selling from 4/28 for July departure (before the stop-sell announcement at the end of May). As part of the promotion, JTB conducted 3 online seminars on 5/25, 6/9 and 7/15. HTJ provided video message and presentation including Hawaiʻi’s safety protocols and preparation of tourism reopen. For the 5/25 seminar, close to 300 consumers participated.

o JALPAK Managed Tour: JALPAK is planning to conduct “Managed Tour” concept starting from August to October. Each tour will consist of 10 pax and there will be four tour series. This tour plan is dependent on the current vaccine progress in Japan.

o Satellite Office Activities: Due to the COVID-19, many wholesale and retail outlets were merged or closed. HTJ continues communicating with these satellite offices to acquire updates as well as conditions. As Aloha Program Satellite offices, 28 posts including virtual tour were created and local Hawaiʻi Satellite office articles are most popular to be viewed.

• Partners Relations: o Mālama Hawaiʻi Website Update: o HTJ added 6 NPOs to Mālama Hawaiʻi website to introduce their missions and activities. o HTJ created 29 columns to introduce activities and constributions to “Mālama” Hawaiʻi in May. 3 stakeholders were showcased in the Travel Industry initiatives. (Link) . Hoshino Resorts, Surfjack Hawaiʻi: Reduction of plastic material usage and reef-safe sunscreen . Wet’N’Wild: Renewal energy initiative . Hawaiʻi HIS: Paperless tour information distribution, UH tourism study support program

o New Mālama Hawaiʻi Video: HTJ is preparing the new Mālama Hawaiʻi videos with Japanese translations. The completion of Japanese version is expected in July.

• Sustainable Coastlines Hawaiʻi (SCH): HTJ connected with SCH and Lanai Transit Hawaiʻi in Japan to start support Hawaiʻi project from June 8th, World Ocean Day. Lanai Transit Hawaiʻi in Japan will create new eco bags and start selling from June 8th and part of the profit will be donated to SCH.

HAWAIʻI TOURISM JAPAN 8

• ‘Iolani Palace: o HTJ connected with ‘Iolani Palace and Japan’s one of the biggest Hawaiian shops, “Maunaloa” to donate their part of profit to support ‘Iolani Palace.

o HTJ also announced ‘Iolani Palace’s 55th Anniversary Celebration virtual event at each SNS and allhawaii.jp.

• Bishop Museum: HTJ shared Bishop Museum’s new exhibition with POW! WOW! to introduce Hawaiʻi’s art culture on each SNS, allhawaii.jp, and email magazines with toal reach of 411,401.

Responsible Tourism Update Hawaiian Culture • May Day 2021 SNS Initiatives: HTJ promoted May Day 2021 event by posting on SNS on May 1. It generated more than 97,000 impressions and 78,000 reach.

 NPO Event Promotion: HTJ promoted online programs that Hawaiʻi’s NPOs offer on allhawaii.jp including ‘Iolani Palace’s “Dining with King Kalakaua”, Bishop Museum’s “Iwikuamo‘o”, Honolulu Museum of Art, and Mission Houses Museum.

• HTJ promoted and livestreamed Royal Hawaiian Center’s “Malu Niu” live concert on HTJ’s facebook with total viewers of 12,000 and 146 comments.

Natural Resources • On 5/23 “World Turtle Day”, HTJ shared the message to protect honu and how honu is considered as sacred animal in Hawaiʻi on each SNS.

Community • NaHHA “Ka Huina: Culture”: HTJ made a presentation of online cultural learning programs for Japan market at NaHHA’s conference, “Ka Huina: Culture”, held on May 24th. HTJ also shared the new “Mālama Hawaiʻi” website to show how we support local commmunities.

• Domestic Events Collaboration: HTJ worked with 9 event organizers in Japan who conduct online/real/hybrid events for 2021. HTJ encouraged them to promote Mālama Hawaiʻi concept to their audiences by utilizing HTJ’s video footage, materials and contents.

Expected Event Name Date Activities Description Attendance Enhancement of event promotion related to HTJ’s Sheraton Grande Tokyo 6/1- Mālama Hawaiʻi; e-mail distribution to Marriott Bay Hotel “Mālama 25,000 8/31 Bonvoy member in August; special HP creation in Sheraton” June; special information flyer distribution; proposal

HAWAIʻI TOURISM JAPAN 9

of local NPO (PVS/Bishop Museum/‘Iolani Palace) donation from the event/workshop Hawaiian Cuisine tasting (Yokohama and Prince Hotel 7/1- 33,000 Shinagawa properties), Mālama Hawai‘I concept Summer Hawaiʻi Fair 8/31 workshop and education seminar will be conducted 2021 Mikawa Hawaiian Aloha program promotion booth will be placed with 5,000 7/3 Festival “Mahina Luau Hawaiian Islands promotion videos

Island Chapters Engagement Update • On each SNS, HTJ introduced the beauty and attractiveness of Oʻahu, Island of Hawaiʻi, Maui, and Kauaʻi.

Island # Posts Reach Featured contents - Bishop Museum’s Pow!Wow! exhibition Oʻahu 20 388,112 - ‘Iolani Palace’s talk session “Dining with the King” Island of - Hapuna beach selected as 2021’s No.1 Beach in the US 7 219,715 Hawaiʻi - Introduce the beauty of Kulaniapia falls on Japan’s Green Day - Maui’s sunset at magic hour Maui 4 160,495 - New COVID-19 information at Kahului airport - The beauty of Napali Coast with rainbow Kauaʻi 3 116,271 - Introduce the nature of Allerton Garden on Japan’s Green Day

“Coming Attractions” for Leisure Market What When Where Aloha Program Webinar (King Kamehameha) 6/11 JST Online Aloha Program webinar (HOKULEA) 6/25 JST Online Hōkūleʻa Website Launch July Online

HAWAIʻI TOURISM JAPAN 10

Hawai‘i Tourism Canada 2021 Monthly Leisure Marketing Report – May

Market Intelligence/Market Conditions

Economy

• Canada's economy could be in for a significant rebound this year, according to an upgraded outlook from the Organization for Economic Co-operation and Development which now expects the Canadian economy to grow by 6.1 per cent in 2021. The prediction is up from an estimate for growth of 4.7 per cent that the OECD made in March. The rebound will be thanks to reduced COVID-19 restrictions in the second half of the year and external demand, the think tank said. The OECD said growth in Canada for 2022 is forecasted at 3.8 per cent compared with a March estimate of 4.0 per cent.

• Higher prices for commodities like oil and the projected increases in demand resulting from the U.S. fiscal package in March are also behind the boost in the country's economic recovery.

• The back half of 2021 could also see increases in consumer spending and improvements to the labour market as public health measures are lifted once the latest waves of COVID-19 die down. The pandemic will continue to pose a risk to the pace of economic recovery, however, as more contractible variants of the disease continue to circulate and force jurisdictions in the country to enact additional health measures.

• The federal government's recent budget indicated it may keep some of the supports given to households and businesses in place until the country is on the other side of the global health crisis.

• After gaining strength in the latter half of 2020, the loonie remained stable in the first three months of 2021 registering an average value of USD $0.79 (+6.0%), a 7.6% increase over 2020.

Outbound Travel Market

• Outbound activity fell to 99,000 overnight trips in March, the lowest volume in eight months. Overall, almost 484,000 trips were recorded throughout the first quarter of 2021, compared to 7.9 million in Q1-2020, and 8.7 million trips in Q1-2019. The first three months of 2021 saw overseas activity decline 92 per cent while transborder trips fell by 95 per cent.

• Canadians made just 51,000 overnight trips to the U.S. in March 2021, the lowest monthly volume since June 2020. Compared to the previous year, overnight auto trips fell 95 per cent and travel by other modes decreased 97 per cent. The national ADR averaged CA$124 throughout the first quarter of 2021, a 24 per cent drop versus 2020.

Page 1 Hawai‘i Tourism Canada Competitive Environment

• Traditionally the highest volume period for Canadian arrivals, destinations in the Caribbean, Mexico, and Central America recorded a 97 per cent decline in activity in the first quarter as capacity to sun destinations was slashed due to travel restrictions. There were just 60,000 arrivals registered during the period, with visits to Mexico accounting for 55 per cent of activity. The first five months of the winter travel season saw 3.1 million fewer arrivals from Canada (-95%).

• There were almost 19,000 Canadian arrivals in the Asia-Pacific region throughout the first quarter of 2021, a 97 per cent decline compared to 2020, and a 98 per cent drop over 2019. The first five months of the winter season (Nov-Mar) saw 34,000 arrivals in the region, compared to almost 1.35 million in 2019-20 (-98 per cent). The overall occupancy rate for the first quarter was 16.2 per cent in Thailand, 52 per cent in Hong Kong, and 43.6 per cent in Singapore.

Consumer Trends

• Consumer confidence ticked up this month as COVID-19 case counts came down. The index jumped up 6.5 points in May to 104.9, almost offsetting the 6.8 points lost last month. Overall, Canadians are feeling more confident about the future, but are still cautious about making any major purchases. While a larger percentage of respondents than a year ago think now is a good time to make a major purchase, close to 57 per cent believe now is a bad time to make a major purchase, the highest level of pessimism since last June.

Travel Trends (direct to Hawai‘i)

• The first four months of 2021 saw a little more than 4,000 arrivals from Canada. More than two-thirds of these visitors were counted in January, before the additional travel restrictions were implemented.

• So far this year, direct arrivals have declined by 98 per cent and indirect arrivals have fallen 95 per cent compared to 2020. Just 1,400 indirect arrivals were counted during the period, compared to almost 29,000 in 2020.

• Independent travellers represented 96 per cent of all visitors so far in 2021, a much higher share than previous years. During the period, 4,000 independent travellers were counted (- 97 per cent), while package trip volumes fell 99 per cent.

• Compared to 2020, stays in hotels (-95 per cent) registered a smaller decline than stays in condos/ timeshares (-99 per cent) and rental homes (-99 per cent).

Page 2 Hawai‘i Tourism Canada Media Trends

• YouTube taps into Canada’s love of CTV YouTube hosted Brandcast Canada, the organization’s second digital upfront event, sharing key 2021 trends and insights in Canada on the platform. CTV viewing and, in turn, innovations around the channel were high on the list of updates, with Google announcing a new, interactive YouTube CTV feature called brand extensions. The new unit (reportedly the first of many the platform has planned) provides a relatively friction-less conversion point, where users can click to learn more about what’s being advertised, sending a link to a connected mobile device so as to not interrupt the viewing experience. According to Jamie Gargatsougias, YouTube Canada’s head of brand strategy, advertisers will be able to measure conversions generated by brand extensions directly in Google Ads. The unit also taps into an increasingly growing and engaged audience. YouTube is currently considered the number one ad-supported video platform in Canada, reaching 95% of the country across all audiences, according to Comscore (Dec. 2020). Canadians are also ten times more likely to say they “can’t live without” YouTube than they are for competing digital platforms (Google/Talkshoppe, CA, whyVideo study, March 2020). Brand extensions makes the ad experience less intrusive and more friction-less, but Gargatsougias says YouTube is also trying to make things easier for advertisers themselves, with an ad package called YouTube Select Connected TV, which is essentially YouTube’s most popular, relevant connected TV content.

• Magazine reach is dipping but newspapers are holding fast A new survey from Vividata shows that magazines are reaching fewer Canadians than in previous years. According to the consumer reach firms’ Spring 2021 Survey of the Canadian Consumer, in an average week, just under eight in 10 Canadian adults read or access magazine and newspaper brands, be it through print or digital platforms, roughly in line with last year’s results. But looking just at magazines, just over eight in 10 Canadians have accessed magazine content in some way over the last three months – a decline from last year, when magazine brands had a reach of nine out of 10 adults across the country. Food, travel and health magazines remain the most popular among Canadians. While 52% of magazine readers are reading exclusively via print, that’s a slight dip from 57% who were doing the same last year (which was itself a six percent dip from the year before that). Just over half of readers access at least some content through their mobile device, while 83% read print, whether on its own or in combination with their digital devices. When it came to advertising, 33% of magazine readers searched online for a product they had seen in a magazine, while 17% made a purchase based on an advertisement they saw. Fifteen percent of readers made a purchase with a coupon they found inside a magazine.

Page 3 Hawai‘i Tourism Canada While overall consumption was down, one in four Canadians reported that they had increased the frequency at which they read magazine content, with younger generations leading that charge (33% of Gen Z and 27% of millennials). The survey also showed newspapers reach 69% of Canadians in an average week, roughly in line with 70% who said the same last year. Many major urban centres, however, had comparatively lower reaches, namely Vancouver (61%), Montreal, Hamilton and Toronto (62%). Compared to magazines, newspaper readers were more likely to access content through a mobile device: only 30% read through print exclusively, with 56% reading at least some content through mobile. But print still has a role, with 58% reading print, either on its own or in combination with at least one digital device. Newspapers and news apps were the second-most trusted sources for information for individuals looking for updates during the COVID-19 pandemic, behind healthcare workers. Unsurprisingly, digital readership goes up the younger a reader is. However, among Boomers and pre-Boomers that do access digital content, they are more likely to seek it out directly from a news brand – younger generations are more likely to access news content after discovering it through search engines or social media links. The findings for community newspapers are similar to spring 2020, reaching 41% of Canadians on a weekly basis, though British Columbia (54%) and Ontario (43%) had a comparatively higher reach. But the study also found that weekly readership is stronger in smaller markets – 49% in towns with a population of under 100,000 – and increases with age. One in three readers also receives and uses flyers found in the papers to plan their purchases, mostly for grocery shopping. The study polled 30,143 Canadians across all 10 provinces.

• Digital’s Share of Media Time Climbs Even Higher A more lasting impact of the pandemic on media habits is digital’s greater share of total media consumption. Not only are people consuming more media at home than ever before, but they’re also increasingly choosing digital formats over traditional ones. In 2019, time spent with digital content surpassed that of traditional media for the first time. In 2020, digital’s trajectory was propelled upward by 31 minutes, or 10.3%. What drove this surge was the increased demand for timely information and entertainment during the pandemic, as well as the use of social media to connect with family and friends from a distance. In 2021, digital media consumption will take up 5:22 per day, a 52.6% share of total media time. Looking beyond 2021, VMC Media expects all traditional formats to lose daily minutes or be stagnant for the rest of our forecast, which will increase digital’s share even further. VMC Media estimates that time spent with digital media will be 5:28 in 2022 and reach 5:31 in 2023 to account for a 54.6% share of media time.

Page 4 Hawai‘i Tourism Canada

• TV vs. Digital Video: A Narrowing Gap The household big screen accounts for most consumers’ heaviest media consumption. It can offer any blend of live TV, on-demand programming, and video content from digital platforms including YouTube, OTT streamers like Netflix, and more niche internet-based service providers. TV still makes up the majority of viewing time, but digital video is increasing its share.

Digital video now commands a 36.3% share of total viewing hours. The digital video service menu has expanded dramatically, leading consumers to spend more time with digital video.

TV will remain the No. 1 single format in time spent rankings. Cord-cutting contributes to digital video’s increasing share of media time. Digital Video Time Spent Will Increase Year After Year Adults in Canada will spend an average of 4:51 daily watching TV and digital video this year, 63.7% of which will go to TV. Daily time spent on digital video and TV combined will decrease by 14 minutes in 2021, after 2020’s pandemic boost. Last year, time spent with digital video alone grew by 13.7% to reach 1:45 per day, making it the first-time digital video time surpassed 100 minutes. In 2021, it will inch up by 1 minute. Digital video’s 36.3% share of total viewing time this year is up nearly 10 percentage points from five years ago. By the end of 2023, that share will grow to 39.0%, with adults watching digital videos for 1:52 daily. Almost a third (32.8%) of digital media time will go toward digital video viewing this year.

Page 5 Hawai‘i Tourism Canada Digital Video Choices Have Expanded The increased consumption of digital video is certainly because people are spending more time at home during the pandemic. But it’s also because the number of long-form video entertainment options has expanded. Traditionally, YouTube accounts for a hefty chunk of digital video viewing. The platform will have 25.2 million monthly viewers in Canada this year, or 65.9% of the population, according to our estimates. More recently, however, OTT streaming services have been the ones driving digital video consumption. This year, more than 22 million people in Canada will watch video content on subscription OTT services each month, well over half the population. These services include international providers like Netflix, Amazon Prime Video, Disney+, and Apple TV+, as well as local providers like Crave, CBC Gem, and Club illico. Netflix remains dominant in Canada: 68.3% of English-speaking internet users and 52.7% of those who spoke French reported using it in Q3 2020, per a GlobalWebIndex survey cited by the Canada Media Fund (CMF).

Consumers spent more money on streaming services amid the pandemic, with 42% of internet users ages 15 and older in Canada saying they had done so, according to Statistics Canada polling in September 2020. Younger cohorts led the way, as 55% of respondents ages 15 to 34 reported increasing their spending.

TV Time Is Sizable, but Viewers Skew Older Despite declines in TV viewing every year but 2020—when the medium added 14 minutes per day to reach 3:20—TV still commands a sizable share of overall media time. This year, TV time will revert to its 2019 level of 3:06 daily, but it will claim almost a third (30.4%) of total media time.

Page 6 Hawai‘i Tourism Canada TV’s reach is also impressive, with 28.3 million monthly viewers in the country this year, or 92.2% of the adult population, per our estimates. Our forecasts do not break out time spent by age group, but it’s clear from recent research that TV viewership skews older. Between September 14 and December 20, 2020, adults 18 to 34 watched 8.8 hours of live TV weekly, which was about a quarter of the amount watched by those 55 and older, according to Numeris tracking data cited by Thinktv. Time spent with TV increased in tandem with the age of viewers, the study found.

Cord-Cutting Favors Digital Video Time Cord-cutting is an underlying reason for digital video’s displacement of TV. The annual decline in cable TV subscribers has been in the low single-digit percentage range for many years, but the number jumped in 2020. Convergence Research Group estimated that there were 388,000 fewer pay TV subscriptions in Canada in 2020, a steeper drop than 2019’s decrease of 283,000. Media Technology Monitor tracking showed that 68% of adults surveyed in fall 2020 were pay TV subscribers. Francophone respondents, mostly in Quebec, subscribed to a higher degree, while the rate among Anglophone respondents was below the national average. Looking ahead, Media Technology Monitor forecast that pay TV subscription penetration would fall to 62% among adults in 2026.

Airlift

• There were 14,000 direct seats offered so far in 2021, compared to 183,000 in 2020 and 270,000 in 2019. After offering seats in January, Air Canada suspended service reducing capacity by -95 per cent. At the same time, WestJet reduced service by -91 per cent compared to 2020.

• Carriers are currently offering 157,000 seats throughout the second half of 2021, three quarters of which are scheduled for Q4.

Market Intelligence/Market Conditions Impact on Hawai‘i Travel

• All international flights landing in Canada are being funnelled to Toronto, Montreal, Calgary or Vancouver. Anyone arriving in Canada will need to have a negative PCR test within 72 hours of their scheduled departure to Canada and must show the results to their airline before they board their flight. Travellers will also need to submit their contact details, a COVID-19 symptom self-assessment and quarantine plan, electronically, before boarding their flight, through the new ArriveCAN app.

Page 7 Hawai‘i Tourism Canada • Incoming passengers must wait at a “supervised hotel” until their test results come back negative, at their own expense, roughly $2,000 per person which is expected to be up to 3 days. With a negative test result, travelers will wait out the rest of their quarantine at home, under “significantly increased surveillance”. In the event of a positive test result, travelers must go to “government facilities” in an effort to determine if the strain is one of the new variants.

• The Canadian government is extending its travel restrictions on non-U.S. international travel into Canada until at least June 21, 2021. The federal government's advisory against all non- essential international travel during the pandemic remains in effect until further notice. Because it is an advisory — not an order — Canadians can still travel abroad, but they do so at their own risk. There are rumors of a possible gradual border reopening on June 22nd.

• As of June 10, more than 27,427,893 doses of approved COVID-19 vaccines have been administered across Canada. 30,498,498 doses have been distributed to the provinces, Canada’s inoculation rate is 13th amongst countries with a population of one million or more people. Canada is now among the leaders when it comes to the percentage of the population vaccinated with at least one dose given to 58 per cent of the total population. This puts the country just behind Israel, which has plateaued at around 63 per cent of its population, and roughly neck-and-neck with the U.K.

• Canada's chief medical officers said the country should seek to administer second COVID- 19 vaccine doses as soon as possible as inoculation supply rises and variants spread.

• Canada's National Advisory Committee on Immunization (NACI) has changed its guidelines to allow for mixing and matching COVID-19 vaccines. A first dose of the AstraZeneca- Oxford vaccine can be followed up with a second AstraZeneca shot, or be safely combined with a second dose of the Pfizer-BioNTech or Moderna shots "unless contraindicated."

• Canada is set to receive 2.9 million COVID-19 vaccine doses from Pfizer-BioNTech.

• Health Canada is authorizing the Pfizer-BioNTech COVID-19 vaccine for adolescents aged 12 to 15, meaning that the jab is now approved for anyone over the age of 12 in Canada.

• New modelling shows that restrictions could be lifted when 75 per cent of adults have received their first vaccine dose and 20 per cent have received their second dose of a vaccine. When that scenario is reached, restrictive measures could be gradually eased.

• Prime Minister Justin Trudeau said summer travel for Canadians might be possible if vaccinations continue and Canada’s COVID-19 numbers continue to drop.

• Many Canadians have been flying to United States airports and then walking across the border to avoid the quarantine requirement, according to CBC News which estimated more than 20,000 such crossings since February.

• Canada may require international travelers to prove they were vaccinated against COVID-19 before they can enter the country, Prime Minister Justin Trudeau said. Trudeau said the federal government will align its policy on whether it will require travelers to provide a vaccine certification with its international allies.

• Canada’s largest airlines are renewing their call for a clear plan from Ottawa on resuming international travel after the European Union moved to reopen for vaccinated tourists. The

Page 8 Hawai‘i Tourism Canada National Airlines Council of Canada lauded the EU for its “science-based approach” and says the federal government should outline a similar plan.

• COVID Travel Insurance - Many Canadian insurance companies now offer Emergency Medical policies that include additional coverage for COVID-19 and related conditions for Canadian Residents. Most major Canadian travel insurers will not cover the cost of the new government-mandated COVID-19 tests for travellers looking to re-enter the country.

• More aid is coming to travel agencies and small tourism businesses, courtesy of the Ontario government’s just-announced $100 million grant. The Ontario Tourism and Travel Small Business Support Grant will provide one-time payments of $10,000 to $20,000 to support eligible small tourism and travel businesses struggling to recover from the impact of the pandemic.

Leisure Activity Update

Consumer

• Air Canada Vacations: Currently on hold after the Canadian Federal Government announcement on December 30, reinforcing the ‘do not travel’ advisory. Will not resume until further notice.

• WestJet Vacations: Currently on hold after the Canadian Federal Government announcement on December 30, reinforcing the ‘do not travel’ advisory. Expected to resume in early March if the do-not-travel advisory eases up.

• Both WestJet and Air Canada have released their schedules for the Summer, Fall and Winter showing an increase of flights and new direct routes to Hawai‘i.

• HTCAN secured a consumer webinar with Ocean Breeze Holidays in Abbotsford, BC, result of the announcement of Air Canada’s new routes and increased service to Hawai‘i.

TOP PERFORMING POSTS FOR THE MONTH – INSTAGRAM:

Page 9 Hawai‘i Tourism Canada TOP PERFORMING POSTS FOR THE MONTH – FACEBOOK:

TOP PERFORMING POSTS FOR THE MONTH – TWITTER:

Note: The bolded text under ‘post text’ was not deployed.

Travel Trade

HTCAN is trying to secure free promotional and educational opportunities due to HTA’s instructions to stay at fixed costs for the first half of 2021.

• Hotelbeds.com Campaign: HTCAN was able to secure free of cost an educational campaign with Hotelbeds.com in their Canadian website. This campaign will run in May and June.

• Outgoing reach to set up upcoming training sessions with travel agencies across the country.

• Proactively working on sharing information regularly with the tourism industry and listening to Travel Advisors’ feedback about consumer behavior and booking trends.

Mālama Hawai‘i Campaign HTCAN has been encouraging Canadians to travel with purpose with the new Mālama Hawai‘i campaign. An email was sent to Hawai‘i specialists, travel advisors and key industry partners highlighting volunteer opportunities, COVID-19 Resources and upcoming events. The idea is to inspire mindful travel and unique experiences that creates a more meaningful vacation.

Page 10 Hawai‘i Tourism Canada

Public Relations

• Proactive and reactive pitching with prior approvals from the HTA. Pitching themes include virtual experiences for families during summer break to keep Hawai‘i top of mind.

• In regular conversations with media to ensure they are updated on all regulations and safety protocols pertaining to COVID testing.

• Spoke with a number of media virtually. Media is ready to travel to Hawai‘i and have already started planning for Spring 2022. We have already received requests from media to assist in planning for 2022.

• Press release with Air Canada’s increased capacity to Hawai‘i and new routes.

Sales Activities

Sales Calls Airline Wholesaler/TA/TO/OTA Other Total 4 25 0 29

• After Air Canada’s announcement of the launch of non-stop options from Canada to Hawai‘i, including its first Montreal-Honolulu and Toronto-Maui services, many Travel Advisors reported immediate inquiries from clients. They are seeing a strong demand in the market for trips to the Hawaiian Islands. Some travel agents will be focusing their marketing efforts on promoting Hawai‘i as the best destination to travel to in 2020-2021. HTCAN have received emails from agents requesting images, new videos and our participation in consumer webinar with the goals to engage their clients on social media platforms and generate new bookings.

• Travel organizations have been putting pressure on the government to remove hotel quarantines on return to Canada within a reasonable timeframe and replace them with rapid testing and at-home isolation until the all-clear has been given. A recent report on border testing and quarantine measures released by the federal government’s COVID-19 Testing and Screening Expert Advisory Panel suggests discontinuing the mandatory hotel

Page 11 Hawai‘i Tourism Canada quarantine program for international air arrivals. The government is working on implement a new strategy to re-start travel for Canadians.

• During sales calls, HTCAN found a positive forecast for winter bookings to Hawai‘i. Travel agencies are seeing a modest but progressive increase in sales for the 2021-2022 winter season. Canadians now have a date for their second vaccine doses, and they are enthusiastic to return to travel. From family reunions to reconnecting with friends and group getaways, travellers are getting a head start on planning their winter vacations. Travel Advisors are not able to recognize their revenue until people travel again, so the latest increase in inquiries and booking has been encouraging. Agencies are expecting to see considerably higher booking numbers starting September this year.

• Travel agents are extremely enthusiastic about the Destination Wedding and Honeymoon sector. Canadian couples have saved money from not traveling for a year; they feel safe traveling with what is essentially a large bubble of family and friends, and they are already preparing to start planning their long-awaited wedding and honeymoon in the Hawaiian Islands. Canadian travellers are also seeking options for Babymoons or bachelor/bachelorette trips. Hawaii is one of the most sought out and popular wedding destinations for Canadians.

• HTCA has been actively working to respond to inquiries from Canadian travellers about Hawai‘i Safe Travels pre-travel testing program. The most common question is when fully vaccinated passengers would be able to skip the process of presenting negative test results upon arrival. Travellers also have questions abut a possible vaccine passport system.

• Continuous communication with the Canadian carriers in order to be up to date on their schedules and short and mid-term plans.

Responsible Tourism Update

• The Mālama Hawai‘i campaign keeps being explained and promoted amongst the travel advisors, and the travel industry.

• Hawaiian Culture is the center of the promotion. An effort has been made to create awareness in the travel advisors to pass along the message to their clients about visitors being respectful of the communities, traditions, environment, etc. when visiting Hawai‘i.

• HTCAN is continuously looking for “greener” partners to engage with. HTCAN has put together a list of responsible travel programs currently running in Hawai‘i to share with ACV and their Sustainable Travel team, but this list is being shared with other tour operators.

Island Chapters Engagement Update

• HTCAN is in communication with the Island Chapters. The design of the social posting calendars has been sent for their approval. HTCAN has scheduled a monthly call with the ICs to update them on the current market situation and to put together the quarterly newsletter.

Page 12 Hawai‘i Tourism Canada “Coming Attractions” for Leisure Market

What When Where Hotelbeds.com campaign May and June Canada-wide KAZ Custom Travel talk June Ontario Ocean Breeze Consumer Webinar June British Columbia

Page 13 Hawai‘i Tourism Canada Hawai‘i Tourism Oceania 2021 Monthly Leisure Marketing Report – May

Market Intelligence/Market Conditions Economy

Australia & New Zealand It has been pleasing to see both the Trans-Tasman Bubble and Cook Islands/NZ Bubble operating during the month of May, providing much needed tourism revenue for our industry. There was a hiccup late in the month due to a community outbreak in Melbourne, although this has only affected travel to and from the State of Victoria at this stage. The Melbourne outbreak has been reflected in a slight drop in consumer confidence as reported by researcher ANZ-Ray Morgan. Although more people do have a positive view of the next 18 months than negative.

During the month both Brand USA and the Visit USA organisations in Australia/New Zealand have announced the recommencement of activity, and with it, optimism. The Australian and New Zealand governments are extremely conscious of the importance of access between AU/NZ and the USA for both business and tourism and much work is taking place to ensure that the USA is one of the early markets to re-open.

The rate of Covid vaccinations continues to increase as we move towards the month of July when greater supplies will start arriving in the area. Thus far, close to 5.5 million vaccinations have been administered in Australia and 750,000 in New Zealand.

On the currency side, it was pleasing to see the continuation of stable and strong local currencies when compared to the US$. Both the AU$ and NZ$ continue to offer great value against the US$ AU$1.00 = US$0.77 and NZ$1.00 = US$0.72).

Outbound Travel Market

Australia & New Zealand The outbound travel market primarily consists of New Zealand (for Australian residents) and the Cook Islands and Australia (for New Zealand residents). The upcoming ski season in New Zealand is proving to be very popular for Australian travellers while strong Kiwi demand for the Cook Islands has led Air New Zealand to add more flights to their frequency. This reflects a high pent-up demand for international travel which is a good sign for future, more widespread re-openings.

Competitive Environment

Australia & New Zealand There has naturally been a big focus on Australia-New Zealand travel with a large amount of activity by both Tourism Australia and Tourism New Zealand. This included the recent Tourism Australia’s showcase trade event, the Australian Tourism Exchange 2021 (ATE) held as a hybrid physical and virtual attendance.

Page | 1 Hawai‘i Tourism Oceania

Travel Trends

Australia & New Zealand The Australia and New Zealand travel industry (and government) are keeping a close eye on the progress of tourism openings around the world. This includes Hawai‘i, and the upcoming plans around removing restrictions for vaccinated travellers in line with a largely vaccinated local population. Many believe that this will be the formula for the opening of our own borders and the key to opening to selected destinations earlier than others.

Airlift (Specific to Hawai‘i)

Australia & New Zealand As hinted in previous intel, Hawaiian Airlines has revised their Australia/New Zealand to HNL schedules to commence mid-December. This follows the previous similar move by Qantas. We know that there is optimism around these dates, although this will become clearer of the next few months.

Market Intelligence/Market Conditions Impact on Hawai‘i Travel

Australia & New Zealand We are seeing a noticeably louder voice by industry and the public around opening of borders sooner. We feel that this will increase even more over the next few months, particularly if the gradual opening of tourism around the globe continues to be successful.

Leisure Activity Update Consumer

Social media content calendar: HTO continues to build momentum on Social Media. Posting 2 -3 posts per week and gradually building momentum and increasing post frequency over. The posts have generated a significant amount of engagement.

Travel Trade

• Visit USA – HTO attended the Visit USA committee meetings in both Australia and New Zealand this month. The key item of was discussion was around the hybrid trade events to take place in July (in both AU and NZ).

• Brand USA – HTO attended this virtual update where Brand USA advised that they will be recommencing activity in the Australia and New Zealand market.

Public Relations

HTO continue to maintain relationships with the trade and consumer press and also assist with destination and industry information where relevant and appropriate. While consumer media coverage has tended to be more locally focussed, we have seen good pick-up of industry news in the travel trade press. This included an article announcing the appointment of George Kam as HTA Board Chair in e Global Travel Media.

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Sales Activities

Sales Calls Airline Wholesaler/TA/TO/OTA Other Total 3 2 1 6

HTO Meetings (mix between virtual and physical) with the following partners: Air New Zealand; Hawaiian Airlines; Vintage Sport; Globus-Cosmos; United Airlines; Kā‘anapali Beach Hotel.

Responsible Tourism Update

During the month, HTO has been exploring the area of Regenerative Tourism both from a local Australia/New Zealand perspective as well as Hawai‘i. We see plenty of synergies and learnings that will help us develop the messaging, programmes and targeted marketing. Our activities included reengagement with Sea Cleaners and other environmental entities who we have worked with before around Hawai‘i initiatives.

HTO is working on compiling a list of possible trade partners to work with to develop and market regenerative tourism product in Hawai‘i in future, once borders are open.

Island Chapters Engagement Update

HTO continue to liaise with the IC’s as required. HTO has been closely following the information provided around the island DMAP process. There are many recommendations that HTO will be able to support through targeted marketing when tourism from Australia and New Zealand resumes.

“Coming Attractions” for Leisure Market July 6: Visit USA NZ Hybrid Trade event July 21: Visit USA AU Hybrid Trade event

HTO will continue to provide market intel and continue liaison with key trade, media and political partners. HTO continues to produce ‘evergreen’ content in preparation for activation of the recovery marketing plan, including the implementation of a social media calendar.

Page | 3 Hawai‘i Tourism Oceania

Hawai‘i Tourism Korea 2021 Monthly Leisure Marketing Report – May

Market Intelligence/Market Conditions

Economy • According to the Organization for Economic Cooperation and Development (OECD), the South Korean economy is forecasted to grow 3.8% this year due to the strong export growth and expansionary macroeconomic policy, ramping up its previous projection of 3.3%.

• Consumer sentiment of Korea rose to the highest level in almost three years in May as the country's economy is on a recovery path and vaccinations go well. The composite consumer sentiment index came in at 105.2 for May, up 3 points from the previous month and the highest level since June 2018.

• South Korea reported the largest job growth in almost seven years in April that the job market is recovering from a yearlong slump caused by the pandemic, and it marked the second straight month of the country reporting job additions. The improved jobs data came as the South Korean economy is on a recovery track on the back of robust exports, and the Korean government expected the number of employed people to grow more than the previous forecast this year.

• The average USD/WON exchange rate in May was 1,123.37 won, slightly depreciated from the previous rate of 1,118.02 won in April.

Outbound Travel Market • The number of outbound travelers from Korea in April recorded 71,302, 126.9% year-on-year increase.

Competitive Environment • The Korean government plans for the travel bubble with several countries to exempt quarantine measures for those who completed vaccinations in their origin countries and submitting PCR negative test result when entering the other countries regardless of the purpose of their visit. The Korean government is under the discussion with Singapore, Guam and New Zealand, where there are less than 25 new confirmed cases per 100,000 people.

• France now allows international travelers starting from several countries which are considered low risk of infection including Korea, Australia, Japan, Singapore, New Zealand.

Consumer Trends • The amount of credit card approval increased 18.3% from a year earlier in April as consumer sentiment revived due to strong exports and improved domestic demand. It has been on the rise for three consecutive months since February, and department store and online sales showed a strong increase with 26.8% and 48.6% increase respectively.

Travel Trends • Demand for travel services is recovering rapidly. WeMakePrice, one of Korea's leading social commerce sites, said that flight ticket sales during April and May increased 436% compared to the same period of last year. The other online shopping service, Ticket Monster, also reported that

HAWAI‘I TOURISM KOREA 1

Jeju Island accommodation products recorded more than twice as much sales as the same period last year.

• A recent survey from Skyscanner showed visible insights for overseas travel trend as below:

o Honolulu ranked as one of top 10 destinations Koreans prefer o Strong preference for big cities with good infrastructure to combine work and vacation o Priority of flight ticket purchases despite the high price: convenient flight time (41%) > safety level of airlines (29%) o Priority for convenience and safety o Travel sentiment: over 50% of Korean respondents will travel within the next 6 months, and 30% of them consider traveling over 14 days.

Media Trends • A bill was proposed to establish a national policy to promote the one-person media industry such as YouTubers, and to establish a dedicated organization and support center. It aims to contribute to improving the quality of the cultural life by creating a foundation for the development of the industry as a whole facing online market expansion amid COVID-19 while personal media content industry is marking its strong opportunity as the most promising industry.

Airlift • Korean Air is considering on operating charter flight for ICN-HNL route (KE053) during the Chuseok period in September and resume ICN-HNL flight in coming November.

• Asiana Airlines is positively considering resuming direct flight to Honolulu in coming November.

• Hawaiian Airlines is operating to two weekly flights (HA 460) from ICN to HNL, every Friday and Sunday.

Market Intelligence/Market Conditions Impact on Hawai‘i Travel • The Korean government implements a new guideline to ease social distancing measures to support vaccinated ones from June 1. Those who have completed vaccination more than once will not be restricted from using government-run welfare facilities and its programs, and visiting nursing hospitals will also be possible. In addition, from July, when 25% of the population completes the first dose of vaccination, inoculators will not be required to wear masks outdoors.

• The South Korean government is considering measures to exempt 14-day quarantine for those who have been vaccinated from overseas when entering Korea regardless of nationality as the government has been implementing quarantine exemption for fully vaccinated Koreans in Korea since May 5. If it goes smoothly, it is expected that countries with more traffic with Korea would be applied, and the U.S. will be the priority.

• The Korean government plans to introduce more relaxed guidelines from July to stimulate the economy as the vaccination rate sharply increases. According to the eased measures, face masks will become optional outdoors from July for the vaccinated, and larger groups in public spaces such as cafes and restaurants will be allowed.

Leisure Activity Update

HAWAI‘I TOURISM KOREA 2

• Reactivation of Marketing Programs: As HTK received final approval from HTA in the last week of May to move forward with revised budget plan for the 2nd half of the year, HTK will resume its marketing activities in market starting June according to the Brand Management Plan.

• HTK COVID-19 Crisis Management: o Pre-PCR Test Program: HTK is following up on the State’s request for sample test results (positive, negative, and inconclusive) from 2 institutions; COVID-10 Test Center at ICN and Korea University Hospital.

o Safe Travels Program: Upon State office’s request, HTK supported to provide Korean translations to Safe Travels system update for Korean visitors.

Consumer • Consumer Promotion with Everland: HTK is discussing with Everland, South Korea's largest theme park which is a subsidiary of Samsung Group, to conduct integrated on/offline co-op consumer promotion during the summer season from 4th week of June to 4th week of August targeting couples, friends and families who enjoys outdoor activities.

• HTK Social Media Channels: HTK uploaded 9 social media posts under the theme of dynamic Hawai‘i to invoke consumers’ urge to travel to Hawai‘i. By showing vivid images of Hawai‘i’s culinary scenes, outdoor activities and signature instagrammable pictures of #HawaiiMoment, HTK was able to increase engagement and receive positive feedbacks from consumers. HTK has received approval on the June social calendar and now developing social calendar for July.

• Inquiry on Pre-PCR Test Program: HTK has been receiving inquiries from Korean consumers on Pre-PCR Test Program and providing appropriate guidelines via phone calls and emails.

Travel Trade • Aloha Specialist University Program (ASU): HTK is developing programs for Q2 ASU session inviting the key trade partners to share current COVID-19 updates on Hawaiian Islands and Mālama Hawai‘i campaign showing the newly launched videos developed by HVCB.

HAWAI‘I TOURISM KOREA 3

• Airline Co-op with HA: Hawaiian Airline plans to increase the flight frequency from 2 to 3 times per week starting from August 1. HTK is discussing with HA to conduct a series of promotion to maximize the bookings.

• Regenerative Tourism Promotion with Mode Tour: In partnership with Mode Tour, HTK will develop Hawai‘i exclusive sales promotion from June to August. The promotion will incorporate mālama Hawai‘i message.

Public Relations • Generating Media Coverage: HTK has been in close contact with travel trade agencies and was able to provide booking data to one of the leading trade media which resulted in one insightful article titled “Newly-wed next door planning honeymoon to Hawai‘i in coming October” highlighting Hawai‘i as the most popular honeymoon destination following the quarantine exemption on May 5th for fully vaccinated residents.

Sales Activities Sales Calls Airline Wholesaler/TA/TO/OTA Other Total 3 5 0 8

• Summary of Key Sales Activities o Airlines: HTK had meeting with OZ and KE to discuss further charter flight operation plan for coming Thanksgiving holidays in September and also had meeting with HA to discuss flight frequency increase in August.

o Travel Agencies: HTK has been maintaining close communication with key travel agencies as majority of agencies are currently scrambling to launch Hawai‘i travel package products in market while the vaccination is picking up its speed and the demands for oversea travel reservation is soaring. HTK held meeting with 5 key tour agencies including Hāna Tour and Mode Tour to discuss further partnership opportunities.

HAWAI‘I TOURISM KOREA 4

Responsible Tourism Update • Mālama Hawai‘i: HTK is preparing to release Korean-subtitled Mālama Hawai‘i videos which have been shared by HVCB as part of HTK’s social campaign in July. HTK will incorporate the videos while utilizing HTK’s social channels under hashtag #MalamaHawaii. HTK will encourage travel agencies to incorporate the videos into their sales promotions. The videos will also be distributed and shared with airlines to be placed as inflight videos.

Island Chapter Engagement Update • HTK had a zoom meeting with OVB team to give an update on Korea’s market conditions and to discuss partnership opportunities including upcoming FAM trips.

Coming Attractions for Leisure Market

What When Where B2C &B2B Newsletter Distribution Late June Seoul Aloha Specialist University June 30 Seoul June Social Calendar Development 4th week of May Seoul Regenerative Tourism Promotion with Mode Tour June - August Seoul Airline co-op with HA July Seoul Consumer Promotion with Everland June - August Seoul

HAWAI‘I TOURISM KOREA 5

6 Presentation and Discussion of Current Market Insights and Conditions in Hawai‘i and Key Major Hawai‘i Tourism Markets HTA REGULAR BOARD MEETING Thursday, June 24, 2021

Hōʻike ʻIkepili Noiʻi ʻOihana Hoʻomākaʻikaʻi Presentation and Discussion of Current Market Insights and Conditions in Hawai‘i and Key Major Hawai‘i Tourism Markets, including the United States, Japan, Canada, Oceania, and Cruise

Jennifer Chun Director of Tourism Research May 2021 Highlights • Preliminary April TAT Collections: $36.5 million • Preliminary Fiscal 21 YTD TAT Collections: $165.5 million (-70.2%) • Fiscal 20 YTD TAT Collections: $555.6 million (-$390.1 million) May 2021 Highlights

State of Hawai‘i Hotel Performance State of Hawai‘i Vacation Rental Performance 2021 2020 2019 2021 2020 2019 Occupancy 61.5% 15.3% 79.0% Occupancy 72.2% 11.4% 71.1% ADR $288 $120 $255 ADR $236 $188 $342 RevPAR $177 $18 $202

State of Hawai‘i Hotel Room Night Supply State of Hawai‘i Vacation Rental Unit Night Supply 1,800 1,800,000 1,600 1,600,000 1,400 1,400,000 1,200 1,200,000 1,000 1,000,000 800 800,000

(thousands) 600 600,000 400 400,000 200 200,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2021 Supply 2020 Supply 2019 Supply 2021 Supply 2020 Supply 2019 Supply

Seats Flights SCHEDULED AIR SERVICE 2021 2020 2019 2021 2020 2019 June 1,049,311 110,117 1,176,403 5,082 479 5,374 July 1,185,333 160,313 1,247,347 5,724 732 5,651 August 1,177,815 177,923 1,203,531 5,692 821 5,436

https://www.hawaiitourismauthority.org/research/infrastructure-research/ Symphony Dashboards

https://www.hawaiitourismauthority.org/research/symphony-dashboards/ Symphony Dashboards

https://www.hawaiitourismauthority.org/research/symphony-dashboards/ Special Reports

https://www.hawaiitourismauthority.org/research/other-research/ HTA Resident Sentiment Survey 2021 Highlights

Prepared for the:

Hawai‘i Tourism Authority: Project #5782 Davies Pacific Center 1250, 841 Bishop Street, Honolulu, Hawai‘i 96813 June 2021 Telephone: 1-808-528-4050 [email protected] What’s the Big Idea?

While many are concerned with visitor industry growth, the 1 majority of Hawai‘i residents believe that tourism is worth the issues associated with the industry.

Resident’s benchmark ratings of current efforts to better 2 manage tourism are mixed, but such initiatives play an important role in influencing resident sentiment.

Moving forward, initiatives that grow the Economic and 3 Quality of Life benefits of tourism, integrated with Managed Tourism efforts, hold the most influence for improving resident sentiment.

2 Is Tourism in Hawai‘i Worth it?

3 “Do you think tourism is worth the issues associated with the industry?” – By Island

100%

80%

60%

40%

20%

0% OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Yes 76% 78% 73% 70% 70% No 24% 22% 27% 30% 30% Base 1779 675 451 376 277

Q3. In 2019, visitors spent nearly $18 billion in Hawai‘i, which produced $2 billion in state tax revenues to support local schools, hospitals, and infrastructure. Do you think tourism is worth the issues associated with the industry?

4 “Do you think tourism is worth the issues associated with the industry?”– By Demographics

Visitor Industry Age Income 100% 80% 60% 40% 20% 0% Visitor Industry Non-Visitor 18-34 35-54 55-64 65+ <$75K $75-$100K $100K+ HH Industry HH Yes 78% 74% 70% 76% 82% 78% 75% 71% 80% No 22% 26% 30% 24% 18% 22% 25% 29% 20% Base 928 851 340 482 307 625 786 236 434

5 “Do you think tourism is worth the issues associated with the industry?” – By Number of Years of Living in Hawai‘i

100%

80%

60%

40%

20%

0% One to Five to Don't OVERALL Less than 10 to 19 20 years four nine Born here know/ 2021 one year years or more years years Refused Yes 76% 68% 81% 81% 81% 77% 74% 60% No 24% 32% 19% 19% 19% 23% 26% 40% Base 1779 19 88 122 175 518 824 33

6 Resident Ratings of Overall Tourism Management Efforts - Benchmark

7 “I feel like more effort is being made to balance economic benefits of tourism and quality of life for residents” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 12% 12% 13% 11% 13% Mid-Range (6-8) 30% 31% 31% 24% 31% Bottom Tier (1-5) 52% 50% 51% 62% 50% DK/Rf 7% 8% 5% 3% 5% Base 1779 675 451 376 277 MEAN 5.28 5.35 5.31 4.78 5.35

Q4.12. Please tell me how much you agree or disagree with each statement using a scale of 1 to 10 with 10 being Completely Agree and 1 meaning Do Not Agree At All. You can choose any number between 1 and 10.

8 “I feel like more effort is being made to balance economic benefits of tourism and quality of life for residents”– By Demographics Visitor Industry Age Income 100% 10 80% 8 60% 6 10=High 40% 4 1=Low 20% 2 0% 0 Visitor Non-Visitor 18-34 35-54 55-64 65+ <$75K $75-$100K $100K+ Industry HH Industry HH Top Box (9-10) 13% 10% 8% 15% 10% 14% 12% 13% 10% Mid-Range (6-8) 29% 31% 27% 27% 32% 35% 29% 30% 33% Bottom Tier (1-5) 52% 51% 59% 52% 55% 40% 52% 53% 53% DK 5% 8% 6% 6% 3% 10% 6% 4% 4% Base 928 851 340 482 307 625 786 236 434 Net Score (Top Box - Bottom Tier) 0 0 0 0 0 0 0 0 0 MEAN 5.25 5.31 4.79 5.36 5.33 5.76 5.35 5.25 5.18

9 “I feel like tourism is being better managed on my island” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 11% 11% 10% 10% 13% Mid-Range (6-8) 26% 26% 26% 20% 33% Bottom Tier (1-5) 56% 55% 55% 63% 50% DK/Rf 7% 8% 5% 3% 5% Base 1779 675 451 376 277 MEAN 5.06 5.13 5.08 4.54 5.23

10 “I feel like tourism is being better managed on my island”– By Demographics

Visitor Industry Age Income 100% 10 80% 8 60% 6 10=High 40% 4 1=Low 20% 2 0% 0 Visitor Non-Visitor 18-34 35-54 55-64 65+ <$75K $75-$100K $100K+ Industry HH Industry HH Top Box (9-10) 11% 11% 8% 13% 10% 13% 10% 16% 10% Mid-Range (6-8) 27% 24% 20% 26% 28% 31% 26% 25% 30% Bottom Tier (1-5) 56% 56% 66% 56% 55% 43% 59% 56% 52% DK 6% 9% 6% 6% 7% 12% 5% 3% 8% Base 928 851 340 482 307 625 786 236 434 Net Score (Top Box - Bottom Tier) 0 0 0 0 0 0 0 0 0 MEAN 5.11 5.01 4.57 5.08 5.05 5.66 4.94 5.25 5.20

11 Resident Ratings of Specific Tourism Management Strategies

12 Importance of Select Managed Tourism Strategies

Regenerative Accommodations Access Do not allow Designate Educate visitors Encourage building of resident-only Stop approval of and residents to visitors to Eliminate additional Charge visitor days of the week additional legal malama the volunteer & give illegal vacation hotel/condo/ access fees to at some state vacation rentals islands and each back during their rentals on my timeshare units state parks and parks, beaches on my island other visits to Hawai‘i island on my island trails and trails 100% 10 80% 8 60% 6 10=High 40% 4 1=Low 20% 2 0% 0 2021 2021 2021 2021 2021 2021 2021 Top Box (9-10) 67% 37% 56% 35% 39% 38% 29% Mid-Range (6-8) 21% 30% 20% 26% 25% 33% 28% Bottom Tier (1-5) 9% 29% 21% 33% 31% 25% 38% DK 3% 5% 3% 6% 5% 3% 5% Base 1,779 1,779 1,779 1,779 1,779 1,779 1,779 MEAN 8.75 7.08 7.92 6.83 7.12 7.27 6.33

Q7. Legally, the state of Hawai‘i is not able to limit travel to the islands. Using a 10-point scale where 10 means Extremely Important and 1 means Not Important at All, how important is it that the state ______to help better manage tourism? 13 “Educate visitors and residents to malama the islands and each other” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 67% 66% 67% 73% 78% Mid-Range (6-8) 21% 22% 21% 18% 12% Bottom Tier (1-5) 9% 9% 11% 7% 8% DK/Rf 3% 4% 2% 2% 2% Base 1779 675 451 376 277 MEAN 8.75 8.70 8.75 8.98 9.06

Q7. Legally, the state of Hawaii is not able to limit travel to the islands. Using a 10-point scale where 10 means Extremely Important and 1 means Not Important at All, how important is it that the state [INSERT} to help better manage tourism?

14 “Encourage visitors to volunteer and give back during their visits to Hawaii” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 37% 35% 38% 40% 46% Mid-Range (6-8) 30% 31% 27% 27% 25% Bottom Tier (1-5) 29% 28% 32% 29% 24% DK/Rf 5% 5% 3% 5% 5% Base 1779 675 451 376 277 MEAN 7.08 7.02 7.00 7.20 7.72

15 “Eliminate illegal vacation rentals on my island” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 56% 55% 53% 57% 63% Mid-Range (6-8) 20% 19% 22% 20% 19% Bottom Tier (1-5) 21% 22% 22% 19% 14% DK/Rf 3% 3% 3% 1% 0% Base 1779 675 451 376 277 MEAN 7.92 7.88 7.76 8.11 8.53

16 “Stop approval of additional legal vacation rentals on my island” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 35% 35% 31% 40% 45% Mid-Range (6-8) 26% 27% 26% 22% 22% Bottom Tier (1-5) 33% 32% 39% 32% 28% DK/Rf 6% 6% 4% 5% 5% Base 1779 675 451 376 277 MEAN 6.83 6.82 6.43 7.11 7.36

17 “Do not allow building of additional hotel/condo/timeshare units on my island” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 39% 36% 35% 54% 52% Mid-Range (6-8) 25% 28% 21% 19% 18% Bottom Tier (1-5) 31% 31% 40% 23% 27% DK/Rf 3% 3% 3% 1% 0% Base 1779 675 451 376 277 MEAN 7.12 7.04 6.67 7.90 7.68

18 “Charge visitor access fees to state parks and trails” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 38% 36% 40% 48% 47% Mid-Range (6-8) 33% 35% 31% 26% 25% Bottom Tier (1-5) 25% 25% 27% 24% 25% DK/Rf 3% 4% 2% 2% 3% Base 1779 675 451 376 277 MEAN 7.27 7.20 7.28 7.57 7.56

19 “Designate resident-only days of the week at some state parks, beaches and trails” – By Island

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 OVERALL 2021 O‘ahu 2021 Hawai‘i Island 2021 Maui County 2021 Kaua‘i 2021 Top Box (9-10) 29% 29% 24% 31% 36% Mid-Range (6-8) 28% 28% 29% 23% 24% Bottom Tier (1-5) 38% 37% 44% 42% 36% DK/Rf 5% 6% 4% 3% 3% Base 1779 675 451 376 277 MEAN 6.33 6.39 5.89 6.41 6.63

20 Drivers of Resident Sentiment

21 Drivers of Resident Sentiment

Charge visitor access fees Supports local businesses Creates well-paying jobs Manage Access & Eliminate illegal Economic vacation rentals Accommodations Supports other industries 10% Impact 42% Negative Island is run for tourists at the impacts 11% Economic + Quality expense of locals of Life + Managed ”Tourism has Tourism: 68% brought more Helps preserve Native benefits than Hawaiian culture, Sustainability problems” Creates shopping, natural resources 11% restaurants & entertainment opportunities Feel like more effort is Sponsors festivals being made to balance Managed economic benefits and Tourism Enhances Quality of life quality of life for residents 12% Quality of Life 14%

22 Overview of Spring 2021 Resident Sentiment Indicators

23 High Level Indicators of Resident Sentiment

Perceived impact of Tourism has brought Perception of tourism Perceived impact of tourism tourism on You and more benefits than industry in Hawai‘i - on the State Your Family problems Favorability 100% 10 80% 8 60% 6 40% 4 20% 2 0% 0 2020 2021 2020 2021 2020 2021 2020 2021 Top Box (9-10) 30% 23% ¯ 31% 25% ¯ 15% 15% 19% 17% 10=High Mid-Range (6-8) 40% 44% 34% 38% 27% 26% 35% 36% 1=Low Bottom Tier (1-5) 28% 31% 33% 34% 37% 41% 42% 44% No Impact 0% 0% 0% 0% 20% 14% 0% 0% DK/Rf 2% 2% 2% 2% 1% 3% 4% 3% Base 1,709 1,779 1,709 1,779 1,709 1,779 1,709 1,779 MEAN 6.97 6.61 ¯ 6.76 6.59 6.11 5.91 6.02 5.87 Q2a/b. Using a 10-point scale where 10 means Extremely Positive and 1 means Extremely Q1. Using a 10-point scale where 10 means Extremely Favorable and 1 means Not Favorable at Negative, how would you rate the overall impact tourism has on…The State as a whole/You and Your All, please give me your opinion of tourism as an industry in Hawai‘i. Family?

Q.4. I’m going to read you some statements about tourism, and ask you to please tell me how much you agree or disagree with each statement using a scale of 1 to 10 with 10 being Completely Agree and 1 meaning Do Not Agree At All. You can choose any number between 1 and 10.

24 Economic Impact

Creates many Creates jobs that Supports our Supports other well-paying jobs have opportunities local businesses industries like for residents for advancement like retail, agriculture dining, etc. 100% 10 80% 8 60% 6 40% 4 20% 2 0% 0 2020 2021 2020 2021 2020 2021 2020 2021 10=High Top Box (9-10) 35% 26% ¯ 33% 24% ¯ 40% 17% 1=Low Mid-Range (6-8) 36% 39% 36% 40% 39% 35% Bottom Tier (1-5) 27% 33% 27% 33% 19% 43% DK/Rf 2% 2% 3% 3% 2% 5% Base 1,709 1,779 1,709 1,779 1,779 1,779 MEAN 7.10 6.58 ¯ 7.09 6.50 ¯ 7.53 5.84

25 Economic Impact (...continued)/Quality of Life

Economic Impact Quality of Life

Creates shopping, Sponsors festivals, Tourism should be Tourism reminds me Enhances residents’ restaurants & activities & sports actively encouraged we have a unique quality of life entertainment on my island culture to share opportunities events for residents and visitors 100% 10 80% 8 60% 6 10=High 40% 4 1=Low 20% 2 0% 0 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Top Box (9-10) 22% 22% 33% 36% 21% 13% ¯ 41% 32% ¯ 29% 20% ¯ Mid-Range (6-8) 32% 33% 35% 35% 32% 33% 37% 39% 39% 36% Bottom Tier (1-5) 43% 42% 30% 27% 44% 51% 20% 27% 29% 39% DK 3% 2% 1% 2% 3% 3% 1% 2% 4% 6% Base 1,709 1,779 1,709 1,779 1,709 1,779 1,709 1,779 1,709 1,779 MEAN 6.13 6.07 6.88 7.12 6.03 5.36 ¯ 7.59 7.00 ¯ 6.95 6.15 ¯ Q.4. I’m going to read you some statements about tourism, and ask you to please tell me how much you agree or disagree with each statement using a scale of 1 to 10 with 10 being Completely Agree and 1 meaning Do Not Agree At All. You can choose any number between 1 and 10.

26 Natural Resources & Cultural Sustainability, Negative Impacts

Sustainability Negative Impacts

Helps sustain Tourism presents Island is run for Helps preserve Island economy Hawai‘i’s natural Native Hawaiian tourists at Native Hawaiian is too dependent resources, parks culture in expense of local culture and language on tourism and cultural sites authentic manner people 100% 10 80% 8 60% 6 40% 4 20% 2 0% 0 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 10=High Top Box (9-10) 16% 14% 14% 10%¯ 10% 9% 32% 29% 57% 49% ¯ 1=Low Mid-Range (6-8) 30% 29% 25% 26% 25% 26% 35% 37% 30% 34% Bottom Tier (1-5) 51% 52% 57% 60% 60% 59% 29% 30% 12% 15% DK/Rf 3% 4% 4% 5% 5% 6% 3% 4% 2% 2% Base 1,709 1,779 1,709 1,779 1,709 1,779 1,709 1,779 1,709 1,779 MEAN 5.45 5.26 4.98 4.59¯ 4.77 4.66 6.94 6.78 8.35 8.00 ¯

27 Mahalo from the Omnitrak Group

28 Appendix

29 Research Objectives

Ø Resident sentiment toward Hawai‘i’s visitor industry is vital to maintaining Responsible and Regenerative Growth in the industry and in the state’s economy overall. Ø The Resident Sentiment Survey (RSS) has been conducted 17 times since 1999, and the current survey was conducted by Omnitrak Group, Inc. The primary objectives of the RSS research are: § To track key resident attitudes toward tourism in Hawai‘i over time. § To identify perceived positive and negative impacts of the visitor industry on local residents. § To identify for the visitor industry and HTA, issues or concerns regarding tourism expressed by residents. § To explore resident perceptions on ideas to “manage” or mitigate the negative impacts associated with tourism. Statistical Analysis -- Within the reports’ graphs and tables, a box or shaded area shows a statistically significant difference across columns (e.g. islands or attributes) in the same year at the 95% level of confidence. An arrow á or â indicates a statistically significant difference when ratings are compared across years at the 95% confidence level. 30 Sample Plan and Methodology Sample Plan OmniTrak used a region-based stratified sampling for the study, the same approach used in earlier Resident Sentiment survey efforts conducted by OmniTrak. The sampling plan divided the State into 12 sub-regions with consideration to population proportion, and allocated sufficient sample for each area to achieve an acceptable sampling error. Within each region, data was collected randomly. The resulting sample of residents was weighted proportionate to population distribution per the latest State Census from the state Department of Business, Economic Development and Tourism. The sample includes both landline (31%) and cellular (15%) phones; and an online component (54%) Statewide sampling produced a total of n = 1,779 respondents as follows: § O‘ahu: 675 § Hawai‘i Island: 451 § Maui County: 376 § Kaua‘i: 277

Methodology § A mixed methodology was used for this survey, including a combination of Computer Assisted Telephone Interview (CATI) and online surveys. Just under half (46%) respondents completed the survey via telephone, and the remainder (54%) completed the survey online. § All calls were placed from OmniTrak’s continuously quality-controlled calling center in the Davies Pacific Center building in Downtown Honolulu. § Field Dates: April 27 through June 3, 2021

31 “Do you think tourism is worth the issues associated with the industry?” - By Area

100%

80%

60%

40%

20%

0% Ewa / East West North / South / Urban Windward North Central West Central / Leeward Wai'anae Hawai'i Hawai'i Moloka'i Lana'i East West Honolulu O'ahu Shore O'ahu Maui East Maui O'ahu 2021 Island Island 2021 2021 Kaua'i Kaua'i 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 Yes 79% 83% 74% 65% 81% 76% 73% 72% 61% 73% 57% 83% 67% 75% No 21% 17% 26% 35% 19% 24% 27% 28% 39% 27% 43% 17% 33% 25% Base 241 152 61 100 60 61 226 225 102 178 76 20 149 128

32 “I feel like more effort is being made to balance economic benefits of tourism and quality of life for residents” - By Area

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 Ewa / East West North / South / Urban Windward North Central West Central / Leeward Wai'anae Hawai'i Hawai'i Moloka'i Lana'i East West Honolulu O'ahu Shore O'ahu Maui East Maui O'ahu 2021 Island Island 2021 2021 Kaua'i Kaua'i 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 Top Box (9-10) 14% 9% 20% 9% 12% 7% 11% 15% 15% 10% 8% 21% 11% 16% Mid-Range (6-8) 31% 34% 18% 23% 15% 40% 34% 27% 27% 23% 32% 25% 31% 32% Bottom Tier (1-5) 45% 50% 56% 64% 67% 48% 50% 54% 55% 65% 50% 52% 54% 45% DK/Rf 10% 7% 6% 4% 7% 5% 5% 5% 2% 2% 9% 2% 4% 7% Base 241 152 61 100 60 61 226 225 102 178 76 20 149 128 MEAN 5.8 5.2 5.3 4.4 4.6 5.5 5.4 5.1 5.1 4.7 5.2 6.0 5.1 5.8

100% 10

80% 8 10=High 1=Low 60% 6

40% 4

20% 2

0% 0 Ewa / East West Central / North / South / Urban Windward North Central West Leeward Wai'anae Hawai'i Hawai'i East Moloka'i Lana'i East West Honolulu O'ahu Shore O'ahu Maui O'ahu 2021 Island Island Maui 2021 2021 Kaua'i Kaua'i 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 Top Box (9-10) 15% 13% 10% 3% 2% 7% 10% 11% 10% 7% 17% 49% 10% 17% Mid-Range (6-8) 23% 32% 15% 27% 33% 26% 27% 25% 19% 21% 17% 18% 32% 35% Bottom Tier (1-5) 52% 50% 75% 62% 58% 57% 56% 55% 66% 64% 56% 29% 55% 41% DK/Rf 10% 6% 1% 8% 7% 10% 7% 9% 4% 8% 10% 4% 2% 6% Base 241 152 61 100 60 61 226 225 102 178 76 20 149 128 MEAN 5.4 5.3 4.5 4.2 4.6 5.3 5.0 5.1 4.5 4.4 5.1 7.5 4.8 6.0

% strongly/ somewhat agree tourism has brought more benefits than problems Annual Visitor Arrivals (Rating of 6-to-10 on 10 Point Scale)

90% 11,000,000 80% 80% 77% 78% 10,000,000 74% 75% 73% 74% 69% 71% 71% 70% 67% 64% 66% 9,000,000 63% 61% 59% 8,000,000 60% 58% 54% 53% 7,000,000 50% 6,000,000 40% 5,000,000 30% 4,000,000 20% 3,000,000

10% 2,000,000

0% 1,000,000 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 1988 1993 1999 2001 2002 2005 2006 2007 2009 2010 2012 2014 2015 2017 2017 2018 2019 2020 2021 Spring Fall %Strongly/Somewhat Agree Visitor Arrivals (by Air)

35 Problems Created by Tourism in Hawai‘i (2021 only) (According to residents saying Hawai‘i tourism creates more problems than benefits)

OVERCROWDING (NET) 66% Overcrowding 64% No supporting infrastructure 1% Less access for "locals" 1% TRAFFIC PROBLEMS 63% DAMAGE TO THE ENVIRONMENT (NET) 60% Damage to the environment 58% Mismanagement of natural resources 1% Overdevelopment 1% HIGH PRICES/HIGHER COST OF LIVING (NET) 55% Higher prices/higher cost of living 55% No affordable housing, housing for "locals" 1% Less access for "locals" 1% TOO DEPENDENT ON TOURISM 51% NO RESPECT FOR CULTURE/TRADITION/‘AINA 49% HEALTH CONCERNS, VIRUSES, POTENTIAL FOR EPIDEMICS 49% LOCALS DON'T BENEFIT FROM TOURISM MONEY 29% CRIME (NET) 20% Main Category Increased crime 20% LOSS OF CULTURAL/COMMUNITY SENSITIVITY 2% Subcategory TOURISM/TOURISTS ARE GIVEN PRIORITY 2% VACATION RENTAL ISSUES <1% OTHER <1% NONE/DON'T KNOW 1% REFUSED 4%

Base: 808 Q5. In your opinion, what problems do you think tourism has created in Hawai‘i? 36 Problems Created by Tourism in Hawai‘i (2021 vs. 2020) (According to residents saying Hawai‘i tourism creates more problems than benefits)

66% OVERCROWDING 56% 63% TRAFFIC PROBLEMS 58% 60% DAMAGE TO THE ENVIRONMENT 56% 55% HIGH PRICES/HIGHER COST OF LIVING 58% 51% TOO DEPENDENT ON TOURISM 44% 49% NO RESPECT FOR CULTURE/TRADITION/‘AINA 37% 49% HEALTH CONCERNS, POTENTIAL FOR EPIDEMICS 43% 29% LOCALS DON'T BENEFIT FROM TOURISM MONEY 22% 20% CRIME 23% 2% LOSS OF CULTURAL/COMMUNITY SENSITIVITY 4% 1% TOURISM/TOURISTS ARE GIVEN PRIORITY 2% INFLUX OF NEWCOMERS 1% 2% 2021 <1% VACATION RENTAL ISSUES 1% 2020 <1% CREATES LOW PAYING JOBS, NO ADVANCEMENT 1% <1% TOURIST SAFETY AN ISSUE 1%

Base: 2021 (808), 2020 (734) Q5. In your opinion, what problems do you think tourism has created in Hawai‘i? 37 Problems Created by Tourism in Hawai‘i: O‘ahu Residents (According to residents saying Hawai‘i tourism creates more problems than benefits)

68% OVERCROWDING 58% 66% TRAFFIC PROBLEMS 59% 63% DAMAGE TO THE ENVIRONMENT 59% 58% TOO DEPENDENT ON TOURISM 50% 55% HIGH PRICES/HIGHER COST OF LIVING 61% 53% NO RESPECT FOR CULTURE/TRADITION/‘AINA 39% 52% HEALTH CONCERNS, POTENTIAL FOR EPIDEMICS 45% 33% LOCALS DON'T BENEFIT FROM TOURISM MONEY 23% 24% CRIME 27% 1% LOSS OF CULTURAL/COMMUNITY SENSITIVITY 3% 1% TOURISM/TOURISTS ARE GIVEN PRIORITY 2% VACATION RENTAL ISSUES 1% 1% 2021 <1% INFLUX OF NEWCOMERS 3% 2020 <1% TOURIST SAFETY AN ISSUE 1% <1% CREATES LOW PAYING JOBS, NO ADVANCEMENT 2%

Base: 2021 (283), 2020 (266) Q5. In your opinion, what problems do you think tourism has created in Hawai‘i? 38 Problems Created by Tourism in Hawai‘i: Maui County Residents (According to residents saying Hawai‘i tourism creates more problems than benefits)

70% OVERCROWDING 63% 62% HIGH PRICES/HIGHER COST OF LIVING 51% 62% TRAFFIC PROBLEMS 70% 57% DAMAGE TO THE ENVIRONMENT 55% 43% HEALTH CONCERNS, POTENTIAL FOR EPIDEMICS 35% 42% TOO DEPENDENT ON TOURISM 38% 36% NO RESPECT FOR CULTURE/TRADITION/‘AINA 34% 24% LOCALS DON'T BENEFIT FROM TOURISM MONEY 19% 12% CRIME 14% 2% CREATES LOW PAYING JOBS, NO ADVANCEMENT 2% 2% LOSS OF CULTURAL/COMMUNITY SENSITIVITY 2% TOURIST SAFETY AN ISSUE 1% 4% 2021 1% INFLUX OF NEWCOMERS 1% 2020 <1% TOURISM/TOURISTS ARE GIVEN PRIORITY 6% <1% VACATION RENTAL ISSUES 1%

Base: 2021 (195), 2020 (189) Q5. In your opinion, what problems do you think tourism has created in Hawai‘i? 39 Problems Created by Tourism in Hawai‘i: Kaua‘i Residents (According to residents saying Hawai‘i tourism creates more problems than benefits)

72% TRAFFIC PROBLEMS 65% 70% OVERCROWDING 57% 53% DAMAGE TO THE ENVIRONMENT 48% 43% HIGH PRICES/HIGHER COST OF LIVING 51% 37% NO RESPECT FOR CULTURE/TRADITION/‘AINA 19% 36% HEALTH CONCERNS, POTENTIAL FOR EPIDEMICS 30% 33% TOO DEPENDENT ON TOURISM 18% 20% LOCALS DON'T BENEFIT FROM TOURISM MONEY 11% 13% CRIME 15% 2% CREATES LOW PAYING JOBS, NO ADVANCEMENT 1% 1% LOSS OF CULTURAL/COMMUNITY SENSITIVITY 4% VACATION RENTAL ISSUES <1% 2021 TOURISM/TOURISTS ARE GIVEN PRIORITY 7% 2020

TOURIST SAFETY AN ISSUE 2%

INFLUX OF NEWCOMERS 1%

Base: 2021 (139), 2020 (95) Q5. In your opinion, what problems do you think tourism has created in Hawai‘i? 40 Problems Created by Tourism in Hawai‘i: Hawai‘i Island Residents (According to residents saying Hawai‘i tourism creates more problems than benefits)

55% OVERCROWDING 43% 53% HIGH PRICES/HIGHER COST OF LIVING 48% 52% DAMAGE TO THE ENVIRONMENT 50% 49% TRAFFIC PROBLEMS 41% 46% HEALTH CONCERNS, POTENTIAL FOR EPIDEMICS 46% 46% NO RESPECT FOR CULTURE/TRADITION/‘AINA 38% 38% TOO DEPENDENT ON TOURISM 38% 24% LOCALS DON'T BENEFIT FROM TOURISM MONEY 25% 15% CRIME 15% 5% LOSS OF CULTURAL/COMMUNITY SENSITIVITY 5% 2% INFLUX OF NEWCOMERS 1% TOURIST SAFETY AN ISSUE 0% 1% 2021 CREATES LOW PAYING JOBS, NO ADVANCEMENT 1% 2020

TOURISM/TOURISTS ARE GIVEN PRIORITY 1% VACATION RENTAL ISSUES

Base: 2021 (191), 2020 (184) Q5. In your opinion, what problems do you think tourism has created in Hawai‘i? 41 Ways Residents can Support Tourism in Hawai‘i (2021 only) (According to residents saying Hawai‘i tourism creates more benefits than problems)

Show the Aloha Spirit: Kind, Helpful, Respectful, Smiling 21% Welcome them and understand their importance 13% Educate tourists regarding land and people 9% Play tourist / Support local business/events 7% Work in the tourism industry 6% Keep Hawaii clean /protect the environment 4% Marketing Hawaii / Encourage others to visit 3% Hawaii too dependent on tourism 2% Allow more community input/involvement 2% Set an example for tourists 1% Support/Offer legal vacation rentals 1% Ensure a safe/pleasurable experience 1% Provide opportunities for tourism to give back to community 1% Loosen COVID restrictions 1% Tolerate / Let them be / Stay away from them 1% Improve infrastructure 1% No Favorable 1% None 22% Don't Know 12% Base: 1144 Q6. You indicated earlier that you were favorable toward tourism. Is there anything that residents like yourself can do to contribute to or support the tourism industry? 42 Impact on You & Your Family

% saying Tourism has been “mostly positive” for you and your family Annual Visitor Arrivals (Rating of 7-to-10 on 10 Point Scale)

70% 12,000,000 60% 60% 58% 56% 10,000,000 50% 45% 49% 50% 44% 44% 43% 8,000,000 42% 42% 41% 41% 40% 41% 41% 40% 33% 34% 6,000,000 30%

4,000,000 20%

10% 2,000,000

0% 0 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 1988 1999 2001 2002 2005 2006 2007 2009 2010 2012 2014 2015 2017 2017 2018 2019 2020 2021 Spring Fall %Mostly Positive Visitor Arrivals (by Air)

Q2b. Using a 10-point scale where 10 means Extremely Positive and 1 means Extremely Negative, how would you rate the overall impact tourism has on…you and your family?

43 Impact of Tourism on You & Your Family

60%

49% 50% 45% 44% 43% 41% 41% 41% 40% 41% 41% 40% 37% 35% 34% 33% 32% 33% 31% 30% 29% 30% 26% 26% 23%

20%

10%

0% Yr 2009 Yr 2010 Yr 2012 Yr 2014 Yr 2015 Yr 2017 Yr 2017 Fall Yr 2018 Yr 2019 Yr 2020 Yr 2021 Spring Mostly Positive (7-10) Bottom Box (Rating 1-5)

Q2b. Using a 10-point scale where 10 means Extremely Positive and 1 means Extremely Negative, how would you rate the overall impact tourism has on…you and your family? 44 Impact of Tourism on You & Your Family – No Impact

30% 28% 26%

25% 22% 21% 20% 20% 18% 17% 15% 15% 15% 14%

10% 10%

0% Yr 2009 Yr 2010 Yr 2012 Yr 2014 Yr 2015 Yr 2017 Yr 2017 Fall Yr 2018 Yr 2019 Yr 2020 Yr 2021 Spring

Q2b. Using a 10-point scale where 10 means Extremely Positive and 1 means Extremely Negative, how would you rate the overall impact tourism has on…you and your family? 45 Impact of Tourism on You & Your Family - By Island

100% 10

80% 8

60% 6 10=High 40% 4 1=Low

20% 2

0% 0 Hawai‘i Hawai‘i Maui Maui OVERALL OVERALL O‘ahu O‘ahu Kaua‘i Kaua‘i Island Island County County 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Top Box (9-10) 15% 15% 14% 15% 16% 16% 20% 16% 14% 15% Mid-Range (6-8) 27% 26% 28% 27% 27% 22% 26% 23% 26% 26% Bottom Tier (1-5) 37% 41% 37% 41% 37% 43% 36% 41% 38% 45% No Impact 20% 14% 21% 14% 18% 16% 17% 16% 22% 14% DK/Rf 1% 3% 2% 3% 2% 3% 1% 3% 0% 1% Base 1709 1779 670 675 460 451 378 376 201 277 MEAN 6.11 5.91 6.12 5.96 6.02 5.81 6.33 5.81 5.83 5.74

Q2b. Using a 10-point scale where 10 means Extremely Positive and 1 means Extremely Negative, how would you rate the overall impact tourism has on…you and your family? Impact of Tourism on You & Your Family- Visitor Industry Household vs Non-Visitor Industry Household

100% 10

80% 8

60% 6 10=High 1=Low 40% 4

20% 2

0% 0 Non- Non- Non- Non- Non- Visitor Visitor Visitor Visitor Visitor Visitor Visitor Visitor Visitor Visitor Industry Industry Industry Industry Industry Industry Industry Industry Industry Industry Household Household Household Household Household Household Household Household Household Household 2017 Fall 2018 2019 2020 2021 2017 Fall 2018 2019 2020 2021 Top Box (9-10) 26% 29% 25% 20% 18% 14% 20% 12% 9% 12% Mid-Range (6-8) 30% 35% 34% 28% 29% 30% 32% 31% 26% 23% Bottom Tier (1-5) 25% 28% 28% 36% 38% 27% 35% 33% 38% 45% No Impact 17% 8% 13% 15% 13% 26% 12% 20% 25% 16% DK/Rf 2% 1% 1% 1% 2% 2% 1% 5% 2% 4% Base 851 866 861 946 928 763 786 846 763 851 MEAN 7.0 7.0 6.9 6.4 6.2 6.6 6.5 6.1 5.8 5.6

Q2b. Using a 10-point scale where 10 means Extremely Positive and 1 means Extremely Negative, how would you rate the overall impact tourism has on…you and your family? 47 “Island is being run for tourists at the expense of local people”

% strongly/ somewhat agree island is being run for tourists at expense of local people Annual Visitor Arrivals (Rating of 6 to 10)

80% 12,000,000

70% 66% 64% 67% 67% 63% 62% 10,000,000 62% 58% 59% 56% 60% 56% 55% 49% 49% 50% 8,000,000 50% 48% 48% 43% 45% 40% 6,000,000

30% 4,000,000 20%

2,000,000 10%

0% 0 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 1988 1993 1999 2001 2002 2005 2006 2007 2009 2010 2012 2014 2015 2017 2017 2018 2019 2020 2021 Spring Fall %Strongly/Somewhat Agree Visitor Arrivals (by Air)

48 “This island is being run for tourists at the expense of local people” – By Island

100% 10

80% 8

60% 6 10=High 40% 4 1=Low

20% 2

0% 0 Maui Maui OVERALL OVERALL Hawai‘i Hawai‘i O‘ahu 2020 O‘ahu 2021 County County Kaua‘i 2020 Kaua‘i 2021 2020 2021 Island 2020 Island 2021 2020 2021 Top Box (9-10) 32% 29% 33% 29% 24% 27% 34% 35% 33% 37% Mid-Range (6-8) 35% 37% 35% 38% 38% 36% 32% 33% 35% 32% Bottom Tier (1-5) 29% 30% 28% 29% 35% 35% 30% 29% 31% 29% DK 3% 4% 4% 4% 3% 3% 3% 4% 2% 3% Base 1709 1779 670 675 460 451 378 376 201 277 MEAN 6.94 6.78 6.99 6.77 6.51 6.59 7.08 6.93 6.95 7.04

49 Executive Summary – Tourism worth the issues/Benefits outweigh Problems by Island/Area

On the geographic level, residents were particularly critical of tourism and its impact on the islands of O’ahu – Wai’anae and Windward - and Moloka’i, and less so on Lāna’i.

83% 81% 83% 76% 78% 79% 76% 75% 74% 70% 73% 70% 73% 72% 73% 65% 67% 61% 57% Tourism is worth the issues associated with it (% Yes)

80%

60% 57% % strongly/ 53% 55% 53% 51% 56% 46% 48% somewhat 41% 44% 44% 45% 46% 45% 45% 45% agree tourism 30% has brought more benefits than problems (Rating 6-10) ‘Ewa/ Wai‘anae Maui West Central/ Moloka‘i Lāna‘i NE SW Statewide O‘ahu Honolulu Windward No. Central Kaua‘i Hawai‘i West East Leeward Shore County Maui E. Maui Kaua‘i Kaua‘i Hawai‘i Hawai‘i

Q3. In 2019, visitors spent nearly $18 billion in Hawaii, which produced $2 billion in state tax revenues to support local schools, hospitals, and infrastructure. Do you think tourism is worth the issues associated with the industry? Q.4. I’m going to read you some statements about tourism, and ask you to please tell me how much you agree or disagree with each statement using a scale of 1 to 10 with 10 being Completely Agree and 1 meaning Do Not Agree At All. You can choose any number between 1 and 10. 50 Executive Summary – Resident Sentiment by Island/Area

On the geographic level, residents were particularly critical of tourism and its impact on the islands of O’ahu – Wai’anae and Windward - and Moloka’i, and less so on Lāna’i.

%saying Tourism has been “mostly 40% 41% 40% 39% 33% 34% 34% 34% 34% 34% 33% 37% positive” for 28% 30% 29% 30% you and your 24% 18% 16% family (Rating 7-10)

76% 74% 72% 70% 69% 67% 67% 66% 65% 67% 68% 68% 64% 67% % strongly/ 62% 59% 62% 59% somewhat agree Island is being run for 33% tourists at expense of local people (Rating 6-10) Maui Statewide O‘ahu Honolulu ‘Ewa/ Wai‘anae Windward No. Central West Central/ Moloka‘i Lāna‘i Kaua‘i NE SW Hawai‘i West East Leeward Shore County Maui E. Maui Kaua‘i Kaua‘i Hawai‘i Hawai‘i Q.4. I’m going to read you some statements about tourism, and ask you to please tell me how much you agree or disagree with each statement using a scale of 1 to 10 with 10 being Completely Agree and 1 meaning Do Not Agree At All. You can choose any number between 1 and 10. Q2a/b. Using a 10-point scale where 10 means Extremely Positive and 1 means Extremely Negative, how would you rate the overall impact tourism has on…The State as 51 a whole/You and Your Family? Hawai‘i Tourism Authority Aided Name Awareness

100%

90% 80% 75% 74% 69% 72% 70% 68% 68%

60%

50%

40%

30%

20%

10%

0% Yr 2014 Yr 2015 Yr 2017 Spring Yr 2017 Fall Yr 2018 Yr 2021

Q8. Prior to doing this survey, were you aware of the existence of the Hawai'i Tourism Authority?

52 Awareness of Hawai‘i Tourism Authority Roles & Satisfaction with Roles (i.e., satisfaction measured among residents aware that HTA is responsible for each area)

140% 9 Sustainable Tourism, Communications with Marketing & Leadership 8 7.3 Cultural preservation Resident & Balancing Needs 7.1 120% 6.9 7 7.1 6.2 6.7¯ 5.8 100% 95% 6.4 ¯ 6 91% ¯ 86% 5.9 82% 5.7 5.5 5.6 5 81% 5.3¯ ¯ 80% 73% ¯ 4

58% 56% 60% 56% 55% 54% 3 48% 48% 2 40% 1

20% 0 Marketing & Leading HI tourism Enhancing HI Promoting Supporting and Proactively educating Communicating with Balancing Promoting HI tourism industry tourism sustainable tourism perpetuating Native the visitor industry, HI residents resident/visitor competitiveness that balances Hawaiian culture, visitors & residents concerning tourism natural resources economic well-being arts & places to malama the needs and resident quality islands/its traditions of life Responsibilities 2018 Responsibilities 2021 Rating 2018 Rating 2021 Q9a. Prior to doing this survey, were you aware that the Hawai'i Tourism Authority is responsible for …….? Q9b. Using a scale of 1 to 10 where 10 means you think the Hawai'i Tourism Authority is doing an Excellent job and 1 means you think the Hawai‘i Tourism Authority is doing a Poor job, how would you rate the job the HTA is doing in…….? 53 7 Presentation by the Omnitrak Group of the Resident Sentiment Survey Results 8 Presentation of the Hawaii Tourism Authority’s Visitor Satisfaction & Activity Report (VSAT) Special COVID Study VISITOR COVID-19 STUDY

June 2021

Prepared for: Hawai‘i Tourism Authority

1 RESEARCH METHODOLOGY

• Online survey conducted June 2, 2021 – June 8, 2021, among visitors to Hawai‘i from U.S. Mainland. • U.S. West (Alaska, California, Oregon, Washington, Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming) • U.S. East (all other states in the Continental U.S.) • All respondents visited Hawai‘i from May 15 – 24, 2021.

MMA Completed Margin of Error + Response Rate

U.S. West 263 6.04 13.3%

U.S. East 235 6.39 12.2%

TOTAL 498 4.39 12.7%

*Margins of error are presented at the 95 percent level of confidence 2 PRE-ARRIVAL TESTING PROTOCOLS

3 PRE-ARRIVAL UNDERSTANDING OF TESTING PROTOCOLS

100% Tracking data 90% remains consistent 80% throughout the pandemic as nearly all visitors 70% to the state were aware of 60% pre-testing protocols were 50% required.

40%

30%

20%

10%

0% Dec-20/ Jan-21 Mar-21 Jun-21

■ Yes 100% 100% 98%

4 Q. Before you left your home state to come to Hawai‘i, did you understand that pre-testing protocols were in place and required? PRE-ARRIVAL COVID-19 TESTING DIFFICULTIES BY MMA

100% The proportion of visitors from both MMAs who 90% indicated the pre-testing 80% experience did not go smoothly 70% for them has remained 60% relatively unchanged. 50% 40% 30% 20% : 10% ' 0% Dec-20/ Jan-21 Mar-21 June-21 -+-U.S. WEST 18% 13% 16% -U.S. EAST 25% 17% 17% 5 Q. Did the pre-travel COVID-19 test requirements go smoothly for you? PRE-ARRIVAL COVID-19 TESTING DIFFICULTIES TOP RESPONSES GIVEN

Dec- 20/ Jan -21 Mar -21 Jun- 21 The proportion of visitors in this BASE 103 76 82 subset of the sample having issues with the Hawai‘i Travels Problems with Hawai‘i Travels website 9% 17% 29% website is increasing. High cost of testing 8% 24% 23%

Issues with trusted partner 18% 5% 21%

Confusion re: type of test required - - 20%

72-hour window for test results 46% 51% 12% unreasonable No tests available for already vaccinated - - 12% travelers

Difficult to find/ access trusted partners 37% 28% 10%

Test results did not arrive in time 15% 18% 9%

6 Q. What problems did you encounter? PRE-ARRIVAL EXPECTATIONS/ FAMILIARITY WITH COVID PROTOCOLS 7 AWARE OF LIMITED TOURISM AMENITIES

4% 4% 8%

The proportion of travelers aware prior to arrival of local restrictions placed on businesses and attractions has dropped in the 96% 96% most recent 92% reporting period.

■ No

■ Yes

DEC-20/ JAN-21 MAR-21 JUN-21

8 Q. Were you aware, before arriving in Hawai‘i, that some businesses such as restaurants, bars, gyms, as well as some visitor attractions, shopping centers, and retail stores, were closed or were required to operate at less than full capacity? AWARE OF LOCAL GOVERNMENT MANDATES

1% 2% 2%

No 99% 98% 98% ■ ■ Yes

DEC-20/ JAN-21 MAR-21 JUN-21

9 Q. Were you aware, before arriving in Hawai‘i, that government mandates were in place such as wearing of masks in some instances, keeping social distances, avoiding congregating in large groups, etc.? VISITOR SATISFACTION

10 VISITOR SATISFACTION – Tracking 8-pt Rating Scale 8=Excellent / 1=Terrible Overall visitor satisfaction 100% 8 during the 90% 7 pandemic is 80% trending 70% 6 downward as more arrive in the 60% 5 islands. 50% 40% 4 30% 3 20% 2 10% 0% 1 Dec-20/ Jan-21 Mar-21 Jun-21

■ Excellent (7-8) 85% 82% 76%

■ Above Avg (5-6) 12% 14% 19%

■ Below Avg (3-4) 2% 3% 2%

■ Terrible (1-2) 2% 1% 3% BASE 495 515 498 MEAN 7.33 7.27 7.00 11 Q. Overall, how would you rate your recent visit to Hawai‘i? VISITOR SATISFACTION – OVERALL SEGMENTATION ANALYSIS

• Visitors with household income above $100k were less satisfied with their trip compared to those living in households with combined incomes below $100K.

• Those who visited a single island were more satisfied with their trip overall compared to those who visited multiple islands during their most recent trip.

12 Q. Overall, how would you rate your recent visit to Hawai‘i? AREAS OF OPPORTUNITY TOP RESPONSES GIVEN

Dec-20/ Jan-21 Mar-21 Jun-21 n=75 n=93 n=122

Limited Capacity/ Availability – restaurants/ attractions - - 30%

COVID mandates/ rules are confusing 27% 34% 17%

Too crowded - - 17%

Fewer COVID restrictions - 23% 15%

Difficult to get tested when already vaccinated - - 12%

Lack of rental cars/transportation alternatives - - 11%

Difficult to get reservations for activities/ restaurants - - 10%

Had to quarantine 12% 3% 2%

Open businesses/ attractions/ beaches 39% 33% 1%

13 Q (If rated 6 or less) What would have needed to change about this trip in order for you to rate this visit a seven or eight? VISITOR SATISFACTION – June 2021 vs. 2019 8-pt Rating Scale 8=Excellent / 1=Terrible

U.S. West U.S. East 100% 8 90% 7 80% 70% 6 60% 5 50% 40% 4 30% 3 20% 2 10% 0% 1 VSAT 2019 Jun-21 VSAT 2019 Jun-21

■ Excellent (7-8) 89% 76% 91% 75%

■ Above Avg (5-6) 10% 20% 8% 18%

■ Below Avg (3-4) 1% 2% 1% 3%

■ Terrible (1-2) 0% 2% 0% 4% BASE 9,998 263 9,520 235 MEAN 7.52 7.06 7.59 6.94 14 Q. Overall, how would you rate your recent trip to Hawai‘i? BRAND ADVOCACY – NEXT SIX MONTHS Tracking

100% 4.00 Brand advocacy is 90% trending 3.50 80% downward as 70% more visitors arrive 3.00 in the islands. 60% 50% 2.50 40% 2.00 30% 20% 1.50 10% 0% 1.00 Dec-20/ Jan21 Mar-21 Jun-21

■ Very likely (4) 86% 78% 64%

■ Somewhat likely (3) 9% 15% 21%

■ Somewhat unlikely (2) 1% 3% 7%

■ Very unlikely (1) 3% 3% 8% BASE 495 515 498 MEAN 3.79 3.68 3.41 15 Q. Overall, as you look back on this most recent trip, how likely would you be to recommend Hawai‘i to a friend or family member as a place to visit in the next six months? BRAND ADVOCACY – NEXT SIX MONTHS SEGMENTATION ANALYSIS

• Younger travelers in the 18-34 age group express a higher likelihood of recommending visiting the state in the next six months.

• Those whose trip consisted of visiting a single island show a higher likelihood of recommending visiting the state in the next six months compared to those who visited multiple islands during their most recent trip.

16 Q. Overall, as you look back on this most recent trip, how likely would you be to recommend Hawai‘i to a friend or family member as a place to visit in the next six months? Caution REASONS FOR NOT RECOMMENDING HAWAI‘I small base TOP RESPONSES GIVEN

Dec-20/Jan-21 Mar-21 Jun-21 n=21 n=40 n=75

Wait for end of pandemic/ travel restrictions - - 20%

Travel is too difficult/ hassle at this time - - 19%

COVID-19 testing requirements are unreasonable 57% 15% 15%

Closures of businesses, attractions, natural 14% 33% 13% landmarks

Too expensive - 15% 11%

Added expenses/ time traveling now 19% - 8%

17 Q (If somewhat or very unlikely) Why would you be unlikely to recommend Hawai‘i to a friend or family member as a place to visit? VISITOR SATISFACTION – Experience Components 8-pt Rating Scale 8=Excellent / 1=Terrible

100% 8 90% 7 80% 70% 6 60% 5 50% 40% 4 30% 3 20% 2 10% 0% 1 Friendliness of Ability to do Shopping / Dining / Hotel / Air travel / Ground workers & things I Attractions Restaurants Lodging Airport Transportation residents wanted to do

■ Excellent (7-8) 79% 61% 56% 73% 57% 54% 51%

■ Above Avg (5-6) 14% 28% 30% 20% 26% 28% 28%

■ Below Avg (3-4) 4% 7% 10% 5% 11% 11% 12%

■ Terrible (1-2) 2% 3% 4% 2% 6% 7% 9% BASE 498 498 498 498 498 498 498 MEAN 7.13 6.54 6.38 6.33 6.23 6.20 6.01 18 Q. Thinking of your most recent trip, how would you rate the following aspects of your visit…? REPEAT VISITORS

19 REPEAT VISITOR – DIRECT COMPARISON Pre-pandemic vs. Pandemic Travel Experience 5-pt Rating Scale

100% 5.00 44% of repeat visitors who have 90% 4.50 traveled to the 80% 4.00 state pre- 70% pandemic 60% 3.50 indicate their 50% 3.00 current trip is less 40% satisfying by 2.50 30% comparison. 2.00 20% 10% 1.50 0% 1.00 OVERALL U.S. West U.S. East

■ Pandemic trip a lot more enjoyable (5) 13% 13% 14%

■ Somewhat more enjoyable (4) 19% 19% 18%

■ No Difference (3) 25% 23% 27%

■ Somewhat less (2) 31% 31% 30%

■ Much less enjoyable (1) 13% 14% 11% BASE 275 173 102 MEAN 2.88 2.86 2.93

20 Q. How did you last pre-pandemic trip to Hawai‘i (February 2020 or earlier) compare overall to this most recent visit to the state? PANDEMIC TRAVEL TO HAWAI‘I LESS SATISFYING Caution small COMPARED TO PRIOR TRIP PRE-PANDEMIC base Reasons for less enjoyable experience

OVERALL U.S. West U.S. East n=120 n=78 n=42 Limited availability/ capacity – restaurants, 24% 29% 14% attractions, lodging, etc.

Too many COVID restrictions 22% 18% 29%

Rental car availability/ cost 16% 19% 10%

Too crowded- lines/ wait times 13% 13% 12%

Need COVID test results 11% 12% 10%

Didn’t get to do everything I wanted to 10% 9% 12%

Difficult to get reservations 8% 8% 10%

21 Q (If current trip less enjoyable) You said this visit was somewhat less enjoyable/ a lot less enjoyable overall than your last pre-pandemic trip… what would need to change about this most recent trip in order for you to rate it as high or higher than your earlier visit? REPEAT VISITOR SATISFACTION – Experience Components Pre-Pandemic vs. Current Trip Top Box (Excellent 7-8)

Ability to do Dining/ Ground Shopping/ Air travel/ Hotel/ Overall things Restaurants trans Attractions Airport Friendliness Lodging 100% 92% 92% 92% 80% 89% 87% 81% 84% 85% 60%

40% 73% 79% 72% 52% 55% 57% 56% 20% 48%

-20% -13% -13% -19% -28% -40% -34% -33% -30% -40% -60% ■ Pre-Pandemic ■ Pandemic Trip ■ % Decline 22 Thinking of your last pre-pandemic trip to Hawai’i (February 2020 or earlier), how would you rate the following aspects of each visit using a scale of one to eight, with eight being excellent and one being terrible? EXPECTATIONS

23 TRIP EXPECTATIONS

100% 3.00 90% 80% 2.50 70% 60% 50% 2.00 40% 30% 1.50 20% 10% 0% 1.00 Dec-20/Jan-21 Mar-21 Jun-21

■ Exceeded expectations (3) 42% 41% 34%

■ Met expectations (2) 52% 51% 52%

■ Left disappointed (1) 6% 8% 14% BASE 495 515 498 MEAN 2.36 2.32 2.19

Q. Thinking of this trip and your expectations before arriving, would you say this trip exceeded your expectations, met your expectations, or were left 24 disappointed? TRIP EXPECTATIONS SEGMENTATION ANALYSIS

• First-time visitors were more likely to feel this trip exceeded their expectations compared to repeat visitors.

• The likelihood a visitor felt their trip met their expectations is highest among younger travelers under the age of 35 and declines with age.

• More affluent visitors (those who live in homes with combined incomes above $100K) were less likely to agree that their trip met their expectations.

Q. Thinking of this trip and your expectations before arriving, would you say this trip exceeded your expectations, met your expectations, or were left 25 disappointed? TRIP EXPECTATIONS – REASONS FOR DISAPPOINTMENT

Caution small base Dec-20/ Jan-21 Mar-21 Jun-21 n=31 n=43 n=72 Difficult to get reservations – restaurants/ - - 15% attractions Mask wearing/ restrictions - - 15%

Closure of businesses/ attractions 26% 33% 14%

Quarantine/ testing requirements 42% 14% 14%

Difficult to get tested after being vaccinated - - 11%

Lack of rental cars/ expensive - - 10%

Too crowded - - 10%

Too expensive - - 8%

Q. (If disappointed) Can you share with us a little about why you were disappointed? 26 PLANNED ACTIVITY / ATTRACTION PARTICIPATION

100% 4.00 90% As more visitors arrive 3.50 and expectations 80% increase, we find 70% 3.00 fewer visitors 60% indicating they did all of the activities that 50% 2.50 they had planned for. 40% 2.00 30% 20% 1.50 10% 0% 1.00 Dec-20/ Jan-21 Mar-21 Jun-21

■ Did all of our planned activities (4) 29% 37% 26%

■ Did most of our planned activities (3) 58% 50% 56%

■ Did a few planned activities (2) 11% 11% 17%

■ Not able to do any planned activities (1) 3% 2% 2% BASE 495 515 498 • MEAN 3.13 3.22 3.05 Q. Which of the following best describes how well you were able to do all of the things you planned and wanted to do during this trip? 27 OBSTACLES TO PLANNED ACTIVITY / ATTRACTION PARTICIPATION Among those who only did few or none of things planned

Dec-20/ Jan-21 Mar-21 Jun-21 n=65 n=67 n=93

Difficult to get reservations – restaurants/ attractions - - 52%

Lack of rental cars/expensive - - 18%

Closures of businesses/ attractions 51% 45% 14%

Capacity limits – attractions/ businesses - 16% 9%

Businesses closing early/ limited hours - - 8%

Q. (If did only a few or none of the planned things) What got in the way of your planned activities? 28 LIKELIHOOD OF RETURN TRIP TO HAWAI‘I Taking COVID-19 Into Consideration

n=498 I will visit again when I want to regardless of the pre-visit 56% requirements I will visit again when the pandemic is over and most or all of the COVID mandates such as mask wearing, social 23% distancing, and business/ attraction restrictions are removed I will visit again when there is no quarantine and no pre-visit 11% coronavirus tested required

I have no plans to return at this time to ever return to Hawai‘i 10%

29 Q. Which of the following best describes when you will probably plan your next trip to Hawai‘i? COVID-19

30 IMPACT OF LOCAL INFECTION RATE ON TRIP PLANNING 4-pt Rating Scale

100% 4.00 90% 3.50 80% Hawai‘i’s 70% relatively low 3.00 COVID-19 60% infection rate is 50% 2.50 more of an incentive to travel 40% 2.00 here amongst 30% U.S. West visitors. 20% 1.50 10% 0% 1.00 Dec-20/ Jan-21 Mar-21 Jun-21

■ Very important (4) 20% 18% 18%

■ One of several reasons (3) 24% 28% 25%

■ Very little impact (2) 20% 21% 22%

■ Had no bearing (1) 36% 33% 34% BASE 495 515 498 MEAN 2.28 2.31 2.27

31 Q. How important, if at all, was Hawai‘i’s relatively low rate of COVID infections as a reason to choose Hawai‘i as a place to visit as compared to other places you might have gone? PERCEPTION OF COVID-19 IMPACT ON HEALTH 4-pt Rating Scale

100% 4.00 90% 3.50 80% 70% 3.00 60% 50% 2.50 40% 2.00 30% 20% 1.50 10% 0% 1.00 Dec-20/Jan-21 Mar-21 Jun-21

■ Serious and urgent (4) 72% 66% 64%

■ Serious but not urgent (3) 16% 21% 19%

■ Concern but not serious (2) 10% 10% 11%

■ Not a concern (1) 1% 2% 6% BASE 495 515 498 MEAN 2.63 2.57 2.56

32 Q. Overall, would you rate COVID-19 as being a…? GOVERNMENT’S POSITION OF SERIOUSNESS OF COVID-19

13% 12% 19% The proportion of visitors who feel skeptical about the government’s position regarding COVID-19 has risen.

87% 88% 81%

■ Feel skeptical

■ Accept seriousness

DEC-20/ JAN-21 MAR-21 JUN-21

33 Q. Generally speaking, overall, do you accept the Hawai‘i government's position about the seriousness of this virus or are you left feeling skeptical? COVID-19 VACCINATION – STATUS

8% 12% 3% Nearly all of the 1% visitors polled in the current study are fully vaccinated. 46%

89% 9% ■ Will not get vaccinated ■ Planning to get vaccinated

■ Need 1 more shot

33% ■ Fully vaccinated

MAR-21 JUN-21

34 Q. Which of the following best describes your current coronavirus vaccination status? COVID-19 VACCINE – STATUS SEGMENATION ANALYSIS

• Repeat visitors were more likely to be fully vaccinated.

• Those visitors who live in homes with combined incomes above $100K were more likely to be vaccinated compared to less affluent travelers.

• College graduates were more likely to have been fully vaccinated.

35 Q. Which of the following best describes your current coronavirus vaccination status? COVID-19 VACCINE – HAWAI‘I TRAVEL INCENTIVE Among those who say they choose not to be vaccinated Caution small base

Mar-21 Jun-21 ■ A lot more likely to get vaccine 2% 3%

■ Somewhat more likely 13% 5% Does not change my mind ■ 86% 92% about the vaccine BASE 64 39

36 Q. (IF SAID Choose not to be vaccinated) If you learned you could visit Hawai‘i without pre-testing by just showing your COVID-19 vaccine card, does that make you more likely to be vaccinated? IMPACT OF CHANGES IN MASK WEARING GUIDELINES

Relaxed mask wearing mandates impacts roughly one in four respondents. 76% 76% 75%

■ Makes no difference

■ Somewhat more likely

12% 12% 11% ■ Lot more likely to visit during the pandemic 13% 12% 14%

OVERALL U.S. WEST U.S. EAST

37 Q. As of May 25, Hawai‘i’s Governor relaxed the rules related to mask wearing. While mask wearing requirements when indoors have not changed, it is no longer required to wear a mask in Hawai‘i when outside. Does knowing this make you a lot more likely to visit Hawai‘i again…? SOURCES OF HAWAI‘I COVID-19 INFORMATION TOP RESPONSES

Dec-20/ Jan- Mar-21 Jun-21 21 n=507 n=492 n=494

Safe travels website (travel.Hawaii.gov) 95% 95% 93%

Friends and family 38% 37% 38%

GoHawaii.com 34% 27% 28%

Social media/ blogs 14% 12% 14%

Airline staff 17% 20% 13%

HTA website (hawaiitourismauthority.org) 20% 14% 13%

Online travel sites 10% 10% 11%

Hotel staff 8% 12% 9%

38 Q. Which, if any, of the following sources did you use to get information about Hawai‘i’s CVOID-19 guidelines? RESPONDENT PROFILE

39 RESPONDENT PROFILE

Overall Overall Overall GENDER AGE ACCOMMODATIONS Male 38% 18-34 32% Hotel/ villa/ resort 52% Female 62% 35-49 27% Condo/ apartment 18% 50-64 28% Timeshare 10% HOUSEHOLD INCOME 65+ 13% Friends/ family 9% < $40,000 5% MEAN 45.00 $40,000 to $59,999 6% MEDIAN 44 $60,000 to $79,999 8% $80,000 to $99,999 9% TRIPS TO HAWAI‘I $100,000 to $124,999 13% First-time 38% $125,000 to $149,999 7% Repeat 62% $150,000 to $174,999 7% $175,000 to $199,999 7% ISLANDS VISITED $200,000 to $249,999 8% O‘ahu 67% $250,000 + 16% Island of Hawai‘i 13% Refused 16% Maui 34% Kaua‘i 6% EDUCATION Lana‘i -% Post-graduate 36% Moloka‘i 0% College graduate 36% Some college 10% ISLANDS VISITED Associates degree 10% Single island 82% Vocational 2% Multi-island trip 18% High school 5% 40